Explain The Three Phases Of Supply Chain

Thursday, Jan 11

>Please describe the three phases of evolution of the supply chain concept. How will e-commerce influence the next phase of supply chain management in the future?

The first phase of evolution started in 1960’s with the development of physical distribution concept that focused on a firm’s outbound logistics system. This system recognizes the relationships between different activities like transportation, inventory requirement, warehousing, packaging, material handling etc. and the cost of these activities. For example, using air transportation or road transportation mode would have different effects on the cost systems. And, the decision-making process is based on the lowest total cost system.

The second phase was a result

The cash-flows represent financial viability and vulnerability of the company.

Demand flow: Reflects the growth in technology which provides the companies to efficiently manage the supply and demand cycle which further improves the production cycle. Therefore, provides an opportunity for the companies to reduce cost and increase revenue by providing effective customer service.

The four flows-products and services, information, financials, and demand --are very important for a company like Amazon. Amazon business model success of supply chain management. This flow is very important for Amazon, because the company heavily depends on transportation for all the delivery of products to the customer, and also provides service for the return of the damaged product. Integration across the boundaries of several organizations, in essence, means that the supply chain needs to function similarly to one organization in satisfying the ultimate customer.

>Empowered customers are transforming supply chain management today. Do you feel like an empowered customer? Why or why

Having interned with Walmart as Operations Intern, I would love to work for Walmart Inc. upon my graduation. Following are the challenges that Walmart is facing vis a vis with their Supply chain management.

1. Determining customers’ buying needs.

a. As customer’s needs are changing rapidly, it is getting very hard for Walmart to determine accurately what is it that customer would buy tomorrow, as customers’ buying pattern is getting very dynamic and changing. Therefore, we can witness that some products are understocked at one time and overstocked the other time. And Walmart ends up reducing the prices, if items are perishable, to recover at least making cost and losing on profit.

b. Walmart stores have too much inventory in the back rooms or on to the trucks/containers that transported these to the stores. Because if one item is sold, the system places an automatic order for the same product to come to the store, even if there may not be the need. This keeps the stockpiled up in the backroom.

2. Single source