There are four types of supply chain models depending on the nature of the business and business objectives. . While there are 6 supply chain models, all of them fit into one of two categories. Either the model focuses on efficiency or on responsiveness.
The reality is that all supply chains have elements of efficiency and responsiveness, but each supply chain model can focus primarily on any of. The flexible model gives companies the freedom to meet high peaks in demand and manage long periods of low-volume workload. The production can be easily turned on and off. As the name suggests, the main purpose of this model is to provide customized configurations, especially for assembly and production processes.
It is a hybrid combination of the agile model and the continuous flow model. Let's understand this with the example of a car manufacturing process. Generally, processes involving intricate subsets, such as assembling gears in a transmission box, are complicated and time consuming due to the intricate interconnection of small parts. However, connecting these multiple subsets to a final product is as easy as connecting and using.
For example, connecting an assembled gearbox to the car's transmission. As simple as that, in cases where the final assembly is simpler compared to the initial assembly and other subsequent processes, the final assembly is managed according to an efficient supply chain or a continuous flow model. The intricate subassembly configurations and subsequent processes then work in an agile model. Only in exceptional cases is the supply chain the oldest linear model, since there are usually suppliers that come from different directions and logistics move in different directions and everything happens simultaneously.
Supply chain management models fall into 6 different categories (although some argue that they do), although they all have the same objectives and are generally based on similar components of the supply chain. The custom configuration model combines the continuous flow supply chain model and an agile supply chain in which processes before product configuration are managed according to the continuous flow model, while subsequent processes function as an agile supply chain. The transport function is fundamental to the supply chain because it is where rubber literally meets the road. From the perspective of an outsider, identifying the supply chain model used can be difficult due to their similarity to each other and to an extensive interconnected web-like structure, but they all have the same common objectives.
Many organizations tend to prefer that their supply chains have the capabilities of all six supply chain models. A good example of this model is a manufacturer that produces products for different industries, but its supply chain is flexible enough to quickly change the raw materials and other supplies needed to meet the customized requirements of a specific customer. Efficiency supply chain models include the efficient chain model, the fast chain model, and the continuous flow model. Today's market requires supply chains that are efficient and responsive to provide what modern companies need to remain competitive.
These models are subject to overlap in several areas and must be designed by a supply chain manager to fit the single supply chain. With strong competition and tight margins in the breakfast cereal market, General Mills knows that much of its profits will go to reducing costs along the supply chain while ensuring that sellers can keep their products in stock. This supply chain model is best suited for industries that manufacture a modern product and have a short life cycle, such as fashion items. The agile supply chain model is ideal for companies that manufacture products with unique specifications from their customers.
Every supply chain must be efficient and responsive to offer the best support, improve productivity and meet consumer demands. .
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