Chapter 1 Understanding Supply Chain

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What makes

the coffee
delicious?
UNDERSTANDIN
G SUPPLY
CHAIN
SUPPLY CHAIN
-consists of the series of activities
and organizations that materials
move through on their journey from
initial suppliers to final customers
UNDERSTANDING SUPPLY CHAIN

Process Mapping
- basic quality tool to help
understand a process and then
improve that process

Process – series of actions that produce something or that lead to a


particular result; group of activities that together create value for the
customer
General Supply Chain Map
IT IS AN ENTITY THAT
SUPPLIES GOODS AND
SERVICES TO ANOTHER
ORGANIZATION.
ENTITY THAT MAKES A GOOD
THROUGH A PROCESS INVOLVING
RAW MATERIALS
AN ENTITY THAT BUYS NON-
COMPETITING PRODUCTS,
WAREHOUSES THEM, AND
RESELLS THEM TO RETAILERS
OR DIRECT TO THE END USERS
OR CUSTOMERS
PROCESS OF SELLING CONSUMER
GOOD OR SERVICES TO
CUSTOMERS THROUGH MULTIPLE
CHANNELS OF DISTRIBUTION TO
EARN A PROFIT
UNDERSTANDING SUPPLY CHAIN
UNDERSTANDING SUPPLY CHAIN
UNDERSTANDING SUPPLY CHAIN

Reasons for doing Process Mapping:


1.Launch business improvement
facilities
2.Increase staff productivity
3.Implement new or decommission old
systems
4.Quickly streamline business
processes
5.Protect knowledge capital

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