Achieving Goals and Value Through Supply Chain

Every process in an organisation has certain goals to achieve. The process is said to be performing well if it is meeting its specific goals. What then are the goals that a supply chain plans to achieve? Let’s hear from our experts on what they have to say about it.

As you learnt in the video above, supply chain is necessary to achieve certain organisational goals, which are as follows:

• To understand the demand for the products 

• To plan the supply and availability of the products 

• To deliver customer service

Supply chain planning process is divided into smaller activities. These activities are carried out to have an effective and efficient supply chain. These activities are as follows:

• Demand planning: It refers to the process of forecasting or predicting the demand for products to ensure that they can be delivered to satisfy customer needs. While planning for demand one must take into account the following:

  1. Pull Processes: Pull processes are performed in response to customer demand. A pull process happens when the market asks for supply and the manufacturer delivers the supply.

  2. Push Processes: Push processes are performed in anticipation of customer demand. A push process happens when the manufacturer pushes the product out into the market, regardless of the market wanting the supply.

Demand planning will be discussed in detail in the next session.

• Supply planning: It refers to the entire planning process including distribution, manufacturing and procurement operations, in accordance with the demand forecasts, considering capacity constraints and material availability.

Supply chain is a business aspect that functions with a singular objective of creating value for your business.