Monday, March 31, 2014

The 4 Main Flows, Manufacturing and Service Models



Hello there!
I am pretty sure you enjoyed the weekend.

Onward to the business of the day, I mentioned in my last post…I would prefer to call it episode. I mentioned in my last episode that I would be sharing on the 4 main flows of a supply chain in line with the manufacturing and service models.

It is essential that young Nigerians understand the importance of supply chain. Global supply chain mechanisms made it possible for global trade that involves goods and services. You can help your company save its running expenditure just by cleverly designing the model of shipment of a cargo from Lagos to London. Or save money and time for a delivery company by designing a more effective routing system. It could even be the use of an effective communication and real time work mechanism in terms of any ERP (Enterprise Resource Planner). The list is endless. As we move along we will find out specific applications to real problems and discuss them.

Four Main Flows in Basic Supply Chain
The diagram below states clearly the 4 main flows of a basic supply chain; information flows both ways on the chain; cash flows one way upstream i.e. customers pay a retailer and retailer pays distributors; products flow downstream from manufacturer to distributor; and products for disposal or recycling flows upstream.

Manufacturing Supply Chain Model
Again, below is the way information, cash, products and materials flow in the supply chain. This explains how you got the clothes you are wearing right! Doesn’t it?






 Services Supply Chain
Finally, the services supply chain model. I am sure you are familiar with it.


Alright, that pretty much wraps up the deal for today.
In my next post…episode I will be sharing on the 3 types of supply chain strategies and Operations Reference Model.
Don’t miss out, till then…enjoy yourself!

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