Supply Chain Design

A working model that outlines the structure and network of a supply chain to estimate the time and cost involved in bringing in goods and services. The design influences the supply chain capability. This involves all the activities that are needed for an organization to build a successful product or service. The design of supply chain management needs to support the manufacturing process in the organization and serve the clients well. The supply chain management promotes better service to the clients in the market. The way the supply chain is designed is an important component that will easily support the demand of an organization in servicing its clients. Capacity requirements and constraints tell about the capacity of the business because the supply chain involves the flow of material and finished goods and the capacity requirements and constraints constrict the flow of goods and services. The lower flow of materials would determine a low capable supply chain. Capability does not mean the effectiveness but more of the capability for the supply chain to meet the demands of its customers.

Supply Chain is the method of getting raw materials into a good to sell directly to consumers. Understanding the aspect of the supply chain and the methods designed to keep that chain flowing smoothly ensures that the products will reach consumers in a timely manner.

Now recently we have seen the impact of the “break” in the supply chain and the chaos that comes along that. We have seen toilet paper shortages, coin shortages, material shortages, product shortages, and personnel shortages. Each shortage causes its own issues and creating its own sets of problems.

I work in an industry that is driven by materials and parts. We have seen the impact that “breaks” can cause. From low inventory, no parts for repairs, and backorder parts. Each one of these presents its own hurdles to the supply chain process. When issues like this occur, it does not make the consumer happy. The basic consumer does not completely understand the issues with supply chain. They see a problem and they don’t want to understand that parts are not available for months. They want the issue resolved in a timely manner.