Monday, 5 December 2016

What is a basic chain?

A supply chain includes many aspects, from the physical movement of goods to the coordination and management of the entire chain.  The steps involved in building a supply chain are:

  • Setting up information flow between all partners in the chain
  • Setting up the movement of all necessary parts, materials and manufactured finished products to the end customers
  • Managing the flow of chains
  • Chain leadership

The development of a basic chain includes the major parts of a supply chain; the basic chain can then be integrated into the supply chain. 

Once there is a basic chain the use of the Double Bell Model is implemented. The Double Bell Model is simply the generic representation of the complete supply network. Each of the processes in the chain that starts at the source and leads to the end customers has four key components as mentioned above. 

The left hand bell is the one with the largest amount of suppliers of materials and components that move through many tiers to the focal manufacturer. The central ellipse is where the conversions take place, where the materials are turned into products or services. The bell on the right is the distribution of the goods to the end consumers via intermediaries and the transport that delivers the goods.  

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