Supply chain

With supply chain ( engl. supply chain [ səplaɪ tʃeɪn ] ) is the network of organizations called that are involved on both upstream and downstream connections in the different processes and activities of the value added in the form of products and services for customers. The concept of supply chain has become standard practice in economics. In particular, it is the subject of supply chain management ( supply chain management). To be distinguished is the supply chain of the value chain and the transport chain.

Definition

In a widely used definition referred to Christopher (1998), a supply chain as a network of organizations that are involved through upstream and downstream connections in the different processes and activities of the value added in the form of products and services for customers. The supply chain thus considered a company, its suppliers, the suppliers of the equipment suppliers, and its customers, the customers' customers, etc. It should be noted in particular that the end customer also is part of the supply chain. In a narrow view, the supply chain is seen as a triad of direct suppliers, private companies and direct customers; this view lacks the holistic, integrated view of the raw material suppliers to end customers.

Supply chain vs.. delivery network

The terms " supply chain " and " supply chain " are misleading: on the one hand, covers a supply not only the supply side (supply ), but also the customers and thus leads from raw material suppliers to the final customer; on the other hand is with her is not a " chain " ( chain), but rather a "network ". It is therefore proposed instead of the supply chain meet their term delivery network (supply network) to use. In German, the term network of suppliers ( supplier pyramid) is common, with this often only the upstream stages of the value are meant, in particular, however, the end user will not be considered as an integral part thereof.

In another definition distinguishes between supply chain and supply network. The supply chain thus comprises suppliers, suppliers of suppliers, the company, its customers and the customers' customers. A delivery network into account that one of the suppliers of the suppliers is also a supplier for one of the clients or even for the end customer.

For complex products with an international global production network - such as in the automotive and the aerospace industry - has the worldwide procurement, production, and sales network early and planned inclusive, are controlled and monitored. The production, transportation and storage routes are described as directly successive intervals, whereby the entire supply chain is mapped uniformly to the customer. The beginning of each interval is clearly defined by a respective point of delivery ( logistics). Alternative production or transport routes are mapped as parallel intervals. At the reporting points of the entire material flow is planned, controlled and continuously monitored. By determining the respective throughput time for each interval can successively the respective total throughput time of the material required, the parts, assemblies, and products in the supply chain are determined

Supply chains as an object of supply chain management

With the increase of international cooperation and vertical integration and focusing on core competencies companies have accepted that they are elements of networked supply chains. Fierce competition in global markets, short lifetimes of product launches and high customer expectations have brought supply into the center managerial decisions. The finding in the modern management that supply chains compete, not individual business units, the supply chain management (SCM; supply chain management) spawned. By emergence arise when viewing the system as " supply chain " in supply chain management entirely new issues that so did not occur in the system " business " in business administration, specifically, the SCM is suitable, the whiplash effect occurring in the supply chain ( bullwhip effect) to reduce and using the postponement strategy ( postponement ) to relocate production and logistics decisions closer to the customer. Due to their specific system properties, the supply chain is regarded by some authors as a complex adaptive system, which has implications for their management.

Goods, information and financial flows

In supply chains are often of goods ( and services ), differentiated information and financial flows: goods and services flow in the supply chain from producer to consumer. Money flows in the supply chain in the opposite direction: from the consumer to the manufacturer. Belonging to this chain information flow first from the consumer to the manufacturer ( eg, ordering a book in the store. Then ordered it from the publisher This, in turn, for the production orders his agents, etc. ). They were accompanying information flow either with them (eg delivery ) or go ahead this (eg delivery notes).

If the supply chain tracked from materials to the consumer, so it can be seen to what extent and for which the raw material is needed. Moreover, it is clear how far-reaching consequences may have price changes of raw material. If the supply chain traced by the consumer to the raw material, as can be seen, all of which was consumed for the production of a final product. With it, even the impact of changes in demand estimate.

Sustainability and Social Responsibility

Incidents such as the building collapse in Sabhar (2013 ), which has claimed more than 1,000 lives have drawn more attention the role of the supply chain as a design object of Corporate Social Responsibility ( CSR) in the foreground. Approaches to supply chain management are consequently increasingly used to strengthen CSR. Wieland and Handfield (2013 ) propose Three measures to ensure CSR along the supply chain:

• So must take place auditing of products and suppliers, but this audit must involve also suppliers of suppliers.
• In addition, the transparency must be increased along the entire supply chain, with smart technologies offer new opportunities.
• Finally, CSR can be through cooperation with local partners, improve with other companies in the industry and with universities.

Examples

Consider a commodity, such as ore (see steel production ):