Business Studies

Apply: Signature Assignment: Supply Chain Operations Plan
Assignment Content
1.
This assignment is intended to help you build a supply chain plan/diagram for a new business by analyzing factors that affect sourcing, logistics, metrics, suppliers, and risk.

Create a diagram of the supply chain plan using one of the following tools:
o Excel
o PowerPoint
o Visio
o PictoGram
o PDF
o Other faculty-approved platform

Write an 875-word analysis of the supply chain. Include the following:
o Value chain and flow of structure
o Inputs
o Outputs, including customer service structure.
o Inventory points and forecasting
o Sourcing activities
o Risks
o Locations
o Logistics

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit your diagram and paper.

ANSWER

Signature Assignment: Supply Chain Operations Plan

Supply chain plan diagram

Value chain and flow of the structure

Businesses carry out various activities as they facilitate the movement of goods from the source to the market as well as provide supply chain-related services to customers. The value chain for producing or manufacturing companies encompasses the raw materials used to produce different products and comprises all steps before and after production as well as the movement of goods before they are sold to financial consumers. For such companies, the value chain activities include acquisition of raw material, designing, manufacturing, marketing, and distribution. The initial step involves determining what to produce and designing the necessary process. The second step in the flow model is the procurement of raw material while the third step is the production of goods. The fourth step is the marketing of goods and services and the last step is the distribution of goods.

Inputs in the supply chain

A company cannot produce goods and services in the absence of the necessary inputs. Inputs include raw materials used in production and well as the techniques, processes, and skills employed to manufacture a product. As suggested before, an organization needs to procure raw materials (inputs) that can be converted into materials. The sources of raw material include the natural environment and supplies from suppliers (Walmsley et al., 2014).  Once the raw materials have been purchased and stored at the designated warehouse inventory must flow within the company from one point to another.  An organization must take into account all the inventory-related activities including receiving, storage, payment for the goods and services, recording of internal transfers among others.  Human labor and expertise is a key input in the manufacturing process. A manufacturing company must hire competent staff to facilitate production processes.

Output

            The output is a term used to describe finished goods (manufactured products). Inputs are consumed and transformed into outputs. The transformation process involves procurement and consumption of materials or resources (like money, labor, and unfinished goods) to produce output. A company can adopt a specific type of production based on existing needs and demands. A good transport and logistics system must be in place to facilitate the delivery of output to consumers (Walmsley et al., 2014). A company can develop distribution centers at different locations where retailers or customers can easily access them. This means that customers can obtain the output from the centers or retailers in their respective localities.

Inventory points and forecasting

An inventory point refers to an organizational division that is assigned key responsibility for managing a group of items or materials. It can also be defined as locations in a warehouse where products can be accessed from. Inventory points play a critical role in the value chain. On the other hand, demand forecasting entails determining the level of determent in the future. Demand forecasting is a significant element of the supply chain processes. It is a key driver for supply chain-related decisions (Ferbar et al., 2009). However, it is difficult to predict the demand for goods and services especially when the market is unstable. Undeniably, there is a close relationship between demand forecasting and inventory points. Demand forecasting enables companies to estimate the volume or amount of goods and services to be produced and stored at a warehouse to meet the expected demand.

Sourcing activities

The sourcing process is characterized by different activities which include understanding the existing needs, examining the supply market, identifying potential suppliers, creating a relevant strategy, negotiating and making agreements with a supplier. These activities take place before and during the procurement process (When a company seeks to obtain raw materials and labor from suppliers).

Risks

Supply chain risks are brought about by interruptions to the flow of goods and services, whether it is raw materials or finished products in the supply chain. There are different risks (internal and external) associated with the supply chain. Some of these risks include demand, environmental, business, cultural risks, and manufacturing risks.

Locations in the supply chain

Facility location decisions are critical when it comes to making decisions regarding logistics activities.  Assembly location, manufacturing facilities, and distribution centers are key in production, packaging, warehousing distribution, and inventory management in general. To ensure that there is smooth running of supply chain activities, manufacturing facilities, warehouses, and distribution centers must be located in strategic locations. Raw materials, as well as finished goods, should be stored in places where both manufacturing companies, businessmen, and customers can easily access them.

Logistics

Logistics is an integral part of the supply chain and related management practices. It entails planning, managing goods, and services as well as information. Logistics aligns the multifaceted patterns of transportation and traffic, export and import operations, inventory management, shipping and receiving, production planning, and purchasing as well as customer service. Logistics can be regarded as the blueprint of the supply chain which is used in management, coordination, management, and monitoring of all the resources required to allow smooth, cost-effective, and timely movement of goods from one point to another (Levner & Ptuskin, 2015). The market demand cannot be met without effective logistics management. It is through this component of the supply chain that a business can serve customers well and at the same time fuel its growth and profitability. Without a doubt, the application of the best transportation techniques and systems is key in today’s competitive business environment.

References

Ferbar, L., Čreslovnik, D., Mojškerc, B., & Rajgelj, M. (2009). Demand forecasting methods in a             supply chain: Smoothing and denoising. International Journal of Production Economics,   118(1), 49-54.

Levner, E., & Ptuskin, A. (2015). An entropy-based approach to identifying vulnerable     components in a supply chain. International Journal of Production Research, 53(22),          6888-6902.

Walmsley, T. L., Hertel, T., & Hummels, D. (2014). Developing a GTAP-based multi-region,      input-output framework for supply chain analysis. In Asia and Global Production          Networks. Edward Elgar Publishing.