On the surface, supply chain models look like spreadsheets, but these models are the basis of supply chains. Before you create a supply chain, you first know the various models that exist and know which model is right for you to use and when to use that model.
A team of experts in several fields will create this system for you. After they have done it, you can use it and determine the performance you want and the various improvements you can make to make it better in the future.
There are many supply chain models that you can use, you need a roadmap to determine which model is best for your business.
In this article, we will discuss 7 different supply chain models and their advantages.
What are supply chain models and why are they important?
A business needs to have an effective supply chain for their success and the supply chain model plays a big part in this. The supply chain model is a way to manage all participants and processes that occur in a supply chain. Each model has its advantages.
Why is the supply chain model important? The supply chain model helps businesses simplify their supply chain operations, thereby reducing existing overhead costs, increasing customer satisfaction, and increasing revenue. The supply chain model also gives businesses the freedom to organize their business so that they can meet existing business needs. A supply chain model can make or break a business.
Let’s look at the various supply chain models here
First, there is the most popular supply chain model, namely the fast supply chain model, which focuses on sending goods quickly and efficiently. This model is commonly used in businesses with fast-changing industries such as fashion or technology businesses.
The next model that is commonly used is the agile supply chain model which has more flexibility and can adapt quickly to changing market conditions. Several companies can work together by sharing resources and information to achieve a certain goal.
You must carefully choose a supply chain model for your business needs. Understand your business first and use the right business model.
7 models in the supply chain
continuous flow model
The first is the continuous flow model. This model a focus on maintaining smooth and consistent supply chain operations by keeping supply and supply stable and preventing fluctuations in demand and supply.
An example of a company using this supply chain is Amazon. Amazon’s supply chain is focused on consistently delivering products with little or no lag. This allows them to maintain their reputation as e-commerce with fast and reliable shipping.
Fastchain models
The fast chain model prioritizes speed by prioritizing fast delivery and being able to respond quickly to changes. The fashion brand Zara is an example of a company that uses this model. They are renowned for theirits fast supply chain, which allows them to put out the latest fashions in a matter of weeks, unlike theirits competitors, who are only able to put out a new wardrobe every six months.
The efficient chain model
This model has a focus on reducing existing waste and increasing supply chain efficiency. Toyota’s automotive company adopted this model and succeeded in creating a lean and highly efficient supply chain. They seek to eliminate unnecessary steps in supply chain operations in order toto increase efficiency.
Agile supply network models
Next is the agile supply network model which focuses on creating a supply chain that is responsive and able to adapt quickly to changes in supply and demand. This model requires good communication and collaboration within existing supply chain processes as well as flexibilitythe to use technology.
Nike is a company that uses this model, they can respond to consumer needs for changing needs for their goods by implementing this model.
Virtual supply chain models
As the name implies, this model uses virtual technologies such as cloud-based computer systems and advanced data analysis to improve existing supply chains. This allows for transparency and clearer communication thereby making the supply chain more efficient and flexible. An example of a company using this virtual supply chain model is Procter & Gamble (P&G), they have successfully increased the level of responsiveness in their supply chain and also reduced costs.
Custom-configured supply chain models
InThis this supply chain model, involves adjustments and arrangements according to consumer requests or preferences. Of course, this requires good communication with consumers and high management of existing processes and products. Dell computer company is one of the companies that use this model, they offer computers with certain specifications to their customers according to existing consumer needs.
Flexible supply chain models
This model emphasizes flexibility in the supply chain as well as the ability to adapt to changes and be able to meet various consumer demands. An example of a company implementing this model is Hewlett Packard (HP), which can respond quickly to changes in the market and consumer preferences.
Trends in supply chain management
- We have often heard that technology will work side by side with humans. And now it has become a reality. Many companies are using technologies such as artificial intelligence and machine automation to replace human labor to achieve supply chain resilience
- Many companies make separate arrangements for some parts of the supply chain instead of following the standard processes that apply. This happens because companies want to provide more personalized services to consumers.
- Many brands believe in the ability of supply chain models to provide transparency to their supply chain operations.
Conclusion
Overall, the model in the supply chain can influence the success and operational efficiency of the supply chain. That’s why a business needs to choose which supply chain model suits their goals and strategies and also continuously develop and improve their supply chain according to needs.
You have also seen that each supply chain model has its advantages and disadvantages. This means that there is no one definite solution for all problems in the supply chain. However, by understanding the various models in the supply chain, you can find out the important information you need to optimize your supply chain.
FAQ’s
What is meant by returns management in reverse logistics?
Goods return management in reverse logistics is a process of managing goods returned by consumers, suppliers, or other external parties. This involves many processes such as managing returns at retail stores, managing returns online, to organizing shipping goods back to manufacturers or vendors.
Why is reverse logistics important in supply chain management?
The reverse logistics process is an important part of modern supply chain management. This includes managing and optimizing the reverse flow of goods from consumption to production of goods. This requires many activities such as reverse logistics planning, reverse logistics supply chain management, reverse distribution strategy, and reverse logistics auctions.
What are the two success factors of reverse logistics?
Although complicated, two key aspects determine success in it.
The first is an efficient reverse logistics network that functions to optimize the flow of products in the existing supply chain and ensure the timely return of goods from consumers. And the second is the use of good software in reverse logistics that can help with automation and make it easier for you to track and analyze reverse supply chain processes directly.
What are the 5S in reverse logistics?
The 5S in reverse logistics are:
- Returns
- Reselling (reselling)
- Repairs
- Repackaging (repackaging)
- Recycling
