This is one of the more traditional models on the list. The continuous flow model is the best option for industries and companies that operate with stability. Stability is essential for this model because it is necessary at both ends, that is, on the part of the manufacturer and the buyer. This model is suitable for companies that produce a uniform set of products and can expect a stable level of market demand.
As the name suggests, goods flow continuously in this model and is based on the stability of supply and demand in the market. The systems of this type of supply chain management method are aligned to ensure a continuous flow of goods. The fast chain model is one of the new names in supply chain strategies. It is suitable for companies that have product lines with short life cycles.
For example, a fashion designer may have a specific line of designs in a season. The company needs to bring the fashion line to the market to maximize returns, since it is usually based on current trends. Because supply chain efficiency can increase a company's competitive advantage, this model is generally considered to be the best among the various types of supply chain integration. The custom-configured model needs customized configurations during the assembly and production stages.
It is a combination of continuous flow and agile methods in which the product being manufactured may require additional customization, but must work from start to finish. It is often used for prototype design and small batch manufacturing. The custom configuration model requires additional investment by the company compared to more traditional models. A logistics company might realize that realigning some channels can help meet the objectives of several customers.
Channel coordination is most commonly applied to inventory management and orders. Your third-party logistics provider (3PL) is most likely working with companies other than yours. Fortunately, this is something that can be used to save everyone money. This is achieved through the network perspective (NP).
However, the uses of supply chains go beyond the shipment of final products. Many companies need raw materials and can only find affordable options through materials logistics management (MLM). Like MLM, material requirement planning (MRP) finds the lowest possible material inventory without affecting production. This reduces storage costs and prevents companies from buying materials in excess.
Like MLM, MRP also includes purchase and delivery. The three main flows of the supply chain are the flow of products, the flow of information and the flow of finance. Let's say, for example, that XYZ Furniture makes high-end furniture and that a supplier provides metal handles and other accessories. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer to their final delivery to the end user.
Supply chain management (SCM) is the oversight of materials, information and finance as they pass from supplier to manufacturer, from wholesaler to retailer, and then to the consumer.
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