"SUPPLY CHAIN DECISION PHASES"

Hello dear friends,

The main objective of the supply chain is to increase the supply chain surplus.and for that there should be proper management of its assets and flow of information, fund and product. this requires the best design of the supply chain, it has to be flexible, adapting the changes in the ambient and customer expectation i.e. highly responsive toward the changes.and for all that decision has been made, can be categorized on the basis of time horizon.

Supply chain Decision phases are,

1. Supply chain strategy or design: structuring the supply chain for the next several years, chains configuration, resource allocation location, and capacity of manufacturing and inventory handling related decisions have been made in this phase. this actually streamlines the manufacturing and distribution system. these decisions have been taken over the years so once decided can not be changed in short notice otherwise it will cost high capital.

2. Supply chain Planning: for this decision, the time horizon is quarter to year, and the main objective is to maximize the supply chain surplus. in this phase decisions related to forecasting for the upcoming period, deciding the cost and price comparing along with the other markets, scheduling and planning the distribution through specific location, inventory policies to be followed up, and other decision-related promotions are taken.

3.Supply chain Operations: In this phase, decisions have been taken regarding individual customer orders. the main objective is to manage and handle the incoming customer order in the best possible manner. scheduling the delivery, replenishments of the orders.in this stage, uncertainty is least and the firm has to optimize the performance.

Whichever company does take these three decisions rightly and effectively considering the changes in the environment and most importantly understanding the customer expectation, is going to enjoy the big revenues and profit margins.

Thanks for reading!