●

Supply ● Th
Chain Operations: Making & e third stage in the supply
Delivery chain management process is
the production of goods
MAKE AND DELIVER requested by the consumer.
Four Types of Operations ● The goods are developed,
crafted, checked , packed and
1. Plan
synced for distribution of this
2. Source
level.
3. Make
4. Deliver ● Here is the responsibility of
the supply chain manager to
prepare all necessary
PLAN
activities for fabrication,
1. Demand testing, packaging and
Forecasting planning.
2. Product
Pricing ● In this phase, companies will
3. Inventory measure the level,
Management manufacturing output, and
productivity of the workers
DELIVER as the most metric-insentive
SOURCE part of the supply chain.
1. Order 1.
Management Procurement Three activities:
2. Delivery 2. Credit and
Scheduling Collections 1. Product Design
Process 2. Product Scheduling
Returns 3. Facility Management

MAKE PRODUCT DESIGN

1. Product
Design ● The components can be
purchased from a select
2. Production
number of chosen
Scheduling
manufacturers.
3. Facility
Manageme ● Inventory should be stored in
nt the form of standardized sub-
assemblies at strategic points
along the supply chain.
Figure 1. Supply Chain Operations
(SCOR)Model, developed by the ● The nature of a commodity
Supply Chain Council forms the supply chain to
sustain it.
MAKE: Categories of Supply
Chain Operations
 ● The more adaptable, ● To plan a product at a
responsive, and cost- effective dedicated plant means to
the supply chain, the more organize operations in the
likely the product’s commercial most efficient way possible
success. and to operate the plant at
the appropriate pace to
● A product design that does a satisfy the product demand.
decent job of integrating the
three viewpoints, design, ● If a single installation or a
procurement and single assembly line creates
manufacturing can result in a many separate items, this is
product that can be backed by more complicated.
an efficient supply chain.
● Each product has to be
PRODUCT SCHEDULING manufactured for some time
and then takes time to turn to
● When market dynamics the next product.
adjust, product scheduling
becomes a constant ● Product scheduling is an
balancing act. ongoing balance between use
patterns, stock levels and the
● Development Managers must quality of customer support.
meet the often contrasting
demands of offering high FACILITY MANAGEMENT
levels of customer care while
keeping inventory down and Both decisions on facilities
plant productivity high. management are taken under the
limits imposed by decisions on
High Utilization Rates the sites of the facility, but
businesses experience the
Long runs in management, implications of decisions to find
central production, and their installations.
delivery systems
● Three Areas of Facility
Management Decisions

1. The Role Each Facility will

Play
2. How Capacity Is Allocated
Low Levels of High Levels of
in Each Facility
Customer
Inventory 3. The Allocation of
Service
Short Suppliers and Markets to
Many limited
manufacturing Each Facility
manufacturing
processes and
runs with high
just-in-time raw
levels of
distribution
inventory

Figure 4. Goals in Output Scheduling

 THREE AREAS OF FACILITY goods and quantities it can
MANAGEMENT DECISIONS allow and accommodate can
serve certain types of
1.The Role Each Facility Will Pay industries, depending on the
position that the facility
• Includes the action that decide
performs and the capability it
the operations in which services
has.
can be carried out.
• Decisions on distributors and
• They define mainly how the
markets for the plan will impact
Supply Chain should transform
the costs of freight and
its activities to satisfy changing
transportation from facility to
demand on the market.
consumers of ability to satisfy
• If there is only one facility or
consumers of services to the
only services one particular
facility and finished goods.
market . it cannot typically
• These decisions often influence
easily be diverted to another
the ability to satisfy consumer
purpose , or another market ,
requirements for the overall
as the supply chain needs
supply chain
adjustment.

2. How Capacity Is Allocated in

Each Facility
DELIVER: Categories of Supply
• Decisions on capacity utilization Chain Operations
result in the equipment and
• The fourth stage is the stage
labor that are employed at the
of delivery.
facility
• In here the goods are shipped
• Changing decisions on capacity
by the retailer to the
allocation is better than
consumer at their destination.
changing decisions on a venue,
This is essentially the logistics
but repeated allocation changes
point , where consumer
are also not cost-efficient.
orders are approved and
• So the distribution of capacity
supplies are prepared for
until determined greatly
delivery.
influences the efficiency and
• The distribution phase is
viability of the supply chain.
frequently known as logistics,
• To allocate very little facilities
in which companies work
power means that demand and
together to accept orders
distribution losses cannot be
from clients, build a network
achieved.
of warehouses, pick up
• Too much power within an
carriers to supply goods to
installation leads to low use
consumers and create a
rates and increased supply
payment invoicing system.
chain costs.
Rules of Management
3. The Allocation of Suppliers and
Materials to each Facility 1. Enter the Order Once and
Only Once
• The first two decisions influence
this. -Capture the order as similar
• The facility needs different as possible to the original source
types of suppliers and the
 remotely. Do not return the order essentially the fastest route
manually. between the two places using
these types of distribution.
2. Automate Order Routing ● This delivery schedule
includes recommendations on
-Send orders immediately to
the amount of delivery to the
convenient delivery points.
individual locations and the
People only handle exceptions.
pace of delivery.
● The benefits of this
distribution system are the
3. Make Order Status Visible ease of procedures and the
scheduling of delivery.
-Allow consumers and service
● Because this approach
agents to immediately view the
specifically transfers goods
details on the order status if they
from where they are
choose to.
processed or deposited in
4. Use Integrated Order warehouses to a place where
Management Systems the products are used.
● Indirect operations that add
-To protect data integrity , multiple smaller shipments to
associate order management, one single larger consolidated
systems electronically with other shipment are removed.
similar systems.
Milk Run Deliveries
● These are some deliveries
DELIVERY SCHEDULING that carry goods from a single
place of origin to various
- Naturally, decisions taken receiving sites; and there are
surrounding the mode of also deliveries that bring
transportation to be used products from multiple places
have as significant impact on of origin to one receiving site.
the distribution scheduling ● Planning milk supply is a
process. much more difficult job than
preparing direct supplies.
- The distribution schedule ● Decisions must be taken
functions under the limits of about the supply volumes of
transport decisions. various materials, the
frequency of supply , and
- There are two categories of
above all, the routing and
distribution strategies for
sequencing of pick ups and
most modes of transport:
supplies.
- Direct deliveries ● The benefits of distribution
- Milk Run system are that the mode of
Deliveries transport can be used more
efficiently and that delivery
DIRECT DELIVERIES costs are smaller since the
place receives fewer and
● These are deliveries from bigger deliveries.
one place to the reception
place. The routing is SOURCES OF DELIVERY
 ● Companies and supply chains
1. Single- Product Locations in general, must monitor the
- These include plants or type of returns , the duration,
warehouses that are available and whether the rates
for shipping in a particular increase or decrease.
commodity or a narrow
selection of similar products. ● Return processing can be
- These installations are ideal if efficient , but at the same
the demand for the items time, note that there is no
they sell is predictable and need for much return
strong and where shipments processing if supply chain
only go to consumer sites, operations are successfully
where the goods can be handled.
shipped in huge quantities.
● Optimization of the return
- When used successfully, they
mechanism would be an
give great economies of
effort to improve the
scale.
efficiency of a process that is
first of all not to take place.
2. Distribution Centers
● With the right rates of rising,
-There are warehouses in
identifying and disclosing, the
which bulk commodities are
causes of the problems
transported from single-product
required are considerably
locations to.
more efficient
- Where vendors are situated
far from consumers, the use of
logistics center ensures economies of
scale in long- distance shipping ,
bringing vast quantities of goods
close to the final consumer.

RETURN PROCESSING

● This often called the “reverse

logistics” phase.

● The returns must be treated

in all Supply Chains

● This is essential since

recycled items are returned ,
and after online e-commerce
transactions, products are
returned as well.

● Returning is critical and can

be effectively managed, but
also it is easier to work on
ways of alleviating the root
causes, of commodity
returns.
MARIAE
PDD