A Supply chain plan or diagram involves a collaborative process that optimizes the production of goods and services from supplier to consumer, matching the demand and supply. Supply forms the primary aspect of the business as it connects suppliers, companies, distributors, retailers, and clients (Silva et al., 2020). For a business to be successful, it is necessary to have a completely functional supply chain that promotes collaboration between various aspects of the chain.
Elegance Electronics
Elegance is a new business in the computer and electronic manufacturing industry based on consumers’ needs. The company management has developed a supply chain plan to enable the organization to attain its objectives and targets. It provides a critical flow of information from sourcing to the return of the product. Figure 1.0 below shows the Elegance supply chain, which covers sourcing, logistics, metrics, suppliers, risk assessment, and the necessary procedure to promote clients’ satisfaction, reducing the chances of loss.
Value Chain and Flow of Structure
The value chain is the overall business activity chain used to create products or services. It involves the initial step of receiving materials to deliver products to the market. This process is crucial in creating a company’s competitive advantage, which helps it compete with other companies within the same industry (Mufutau et al., 2021). The elegance value chain has two main activities, primary and secondary. The primary activity involves activities that promote product creation, sale, maintenance, and support. These activities include inbound operations, outbound logistics, marketing and sales, and service. The secondary activities are those actions that support primary activities. They include procurement and purchasing, human resource management, technology development, and company infrastructure.
Inputs
The inputs in a supply chain are outsourced materials from various suppliers, raw materials, and product development requirements. The inputs are the basic unit of the Elegance supply chain as it determines the quality of the output. Furthermore, the input includes activities related to the inbound logistics involving the raw materials that promote the efficiency of the production process resulting in quality products. Elegance inputs are from the suppliers who form the primary part of the company’s supply chain.
Outputs, Including Customer Service Structure
The output of the supply chain is finished products that have passed through various processes in the production zone. Other output features include designing and developing products based on the client’s specifications and quality requirements. Logistics is also part of the supply chain output as it involves the transfer of products to distributors and consumers. The company has a service structure that ensures quality products based on clients’ requirements are produced. It takes place during the transaction and involves returning the product. It takes forms such as phone calls, in-person interaction, and service systems like NPS.
Inventory Points and Forecasting
Inventory points and forecasting involve using systems that use past data, identify trends in the data, and predict the required inventory for an upcoming period. Forecasting ensures that the company keeps enough inventory to fulfill the clients’ orders without holding cash in store by keeping extra products (Hofmann & Rutschmann, 2018). It gives the company various advantages, such as tracking its growth and making necessary changes. The inventory point in the supply chain involves both the raw material and finished products, ensuring continuous production flow.
Sourcing Activities
Sourcing implies identifying relevant suppliers who provide quality materials at a price, which gives the company the required profit margin. It is the difference-makers that determine the quality of the product the company delivers in the market and the cost of the products. Sourcing is mainly about balancing raw materials that the company needs, their affordability, and the quality of the product (Ghamari, 2020). Sourcing involves market research, establishing standards, finding quality sources of materials and services, and establishing payment plans. Furthermore, it enables the company to manage risk by creating a solid relationship between the company and suppliers.
Risks
Supply chain risk management involves assessing, identifying, and extenuating the organization’s supply chain risks. Implementing supply chain risk management techniques is necessary to ensure that the company can operate efficiently (Vishnu et al., 2019). The supply chain risk involves external and internal causes. External causes result from forces operating outside the organization. They include demand risks, supply risks, environmental risks, and business risks. The internal supply chain risks are from factors within the company’s control. For example, manufacturing, business, planning, and control risks and mitigation and contingency risks. These risks can be mitigated using various methods, such as IoT capabilities and risk assessment software.
Locations
The location of the materials, production area, and warehouses are significant in ensuring efficiency in the production process. Supplies are usually kept in areas that are far from the production zone, and it is necessary for the company to know where they are located for easy access when needed. Using indoor positioning tools ensures that warehouses are organized for input and output. This ensures that material retrieval is easy; hence getting products to the required area is fast.
Logistics
Logistics is a part of supply chain management that deals with planning, implementing, and controlling the forward and reverse flow of products and services from the producer to the consumer to meet clients’ needs. The role of effective logistics is to attain competitiveness and promote the company’s profitability (Kim et al., 2020). Furthermore, logistics help to minimize company risk, consolidate traffic volumes, and provide timely responses to market demand.
References
Ghamari, Z. (2020). Supplier selection in multiple sourcing: A proactive approach to manage the supply chain risk. International Journal of Integrated Supply Management, 13(1), 54. Web.
Hofmann, E., & Rutschmann, E. (2018). Big data analytics and demand forecasting in supply chains: A conceptual analysis. The International Journal of Logistics Management, 29(2), 739-766. Web.
Kim, S., Lee, H., & Hwang, T. (2020). Logistics integration in the supply chain: A resource dependence theory perspective. International Journal of Quality Innovation, 6(1), 1-8. Web.
Mufutau, G., Victor, O., & Oladimeji, O. (2021). Supply chain management and product value creation: A panacea for enhancing company’s profitability. American Journal of Supply Chain Management, 6(1), 13-26. Web.
Silva, C., Sousa, P., Moreira, M., & Amaro, G. (2020). Do supply chain management practices influence firm performance? International Journal of Information Systems and Supply Chain Management, 13(3), 1-22. Web.
Vishnu, C., Sridharan, R., & Kumar, P. (2019). Supply chain risk management: Models and methods. International Journal of Management and Decision Making, 18(1), 31-66. Web.