After the manufacture of a commodity, the next step is to move it to the consumers. Moving the product follows a supply chain. Therefore, a supply chain is an organized system in which a product moves through to reach consumers.
However, some companies don't work with supply chains. For example, a company that makes ordered goods takes them to the consumer directly. However, storage for the raw materials, which is part of a supply chain is needed here.
The supply systems contain several parties to facilitate the exchange of the goods.
Type of Supply Chain Models
You aren't required to follow a specially designed chain. Instead, you should go for what suits your products. These factors include product nature, size, and the distance between you and your consumer.
The types of supply chain models include:
- Integrated Make to Stock Type
If you opt for an integrated make-to-stock model, you can follow up on real-time commodity demand. Therefore, restocking the inventory of the finished products is easy.
Here, there is the usage of an enterprise system that integrates the manufacturing and the commodity demand. It is easy for you to get useful information to adjust your production process using the system. Therefore, you can improve production to meet the new demand.
Following the new demand, you can then adjust raw materials to support the new design of the production.
- Build to Order Model
In this model, you manufacture the commodities as ordered by your consumers. You must ensure careful handling of the components inventory as well as the supply of goods to a chain.
I feel this is a great model since customers get customized products at a mass level and within a short time.
- Non-Stop Replenishing Model
Here, you set a continuous replenishing of the inventory. For this reason, coordination is vital between your manufacturer and the intermediaries who run the supply chain.
The real-time communication on changes in demand and supply is crucial. This is because late communication would result in loading of the supply chain with the wrong goods. Consequently, you would incur losses or even lead to the failure of your supply chain.
- Channel Assembly Model
The components or parts of the larger products are taken through a supply chain as opposed to a full product. However, this model must work in cooperation with a third-party logistics company responsible for assembling.
Alternatively, the third-party assembling firm can do the assembling in a consumer's home.
The Process of a Supply Chain
Your supply chain comprises five essential components as discussed below:
Under planning, you come up with ways in which the product undergoes distribution. You should be careful as the plans must satisfy the needs of the consumer. Besides, you should devise the most profitable design of supply.
For a proper chain of supply, you must get a reliable source of raw materials. Afterward, ensure that you build a good relationship with the raw materials supplier.
Moreover, you should ensure the suppliers get paid for their service to ensure a steady supply chain. At least do this to prevent supply chain breakdown.
- Making the Product
The third stage is the actual manufacturing of the product to be taken through the supply chain. The products, based on your customer demand, are produced, tested, and packaged ready for distribution.
- Delivery of the Product
I believe that the supply chain has a central role in this stage. The reason is that this is where the supply of your finished commodity to the end-user occurs. It is the logistics level where orders are processed and goods shipped to owners.
- Returning the Products
Sometimes some goods are just defective, and as a manufacturer, you have to respond to such goods. The supply chain has a room for these returns, and you should either replace or refund your customers for the defective products.
If you choose an inappropriate supply chain, you are likely to lose your existing and potential customers. For your product to reach a better target audience, you require to approach professional supply chain designers. They can get you a good model customized for your product alone.