Process View of Supply Chain
Process View of Supply Chain
Process View of Supply Chain
a) Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces
between two successive supply chain stages
b) Push/pull view: processes in a supply chain are divided into two categories depending on whether they are
executed in response to a customer order (pull) or in anticipation of a customer order (push).
Replenishment Cycle
All processes involved in replenishing retailer inventories (retailer is now the customer)
Retail order trigger
Retail order entry
Retail order fulfillment
Retail order receiving
Manufacturing Cycle
All processes involved in replenishing distributor (or retailer) inventory
Order arrival from the distributor, retailer, or customer
Production scheduling
Manufacturing and shipping
Receiving at the distributor, retailer, or Customer
Procurement Cycle
All processes necessary to ensure that materials are available for manufacturing to occur according
to schedule
Manufacturer orders components from suppliers to replenish component inventories
However, component orders can be determined precisely from production schedules (different from
retailer/distributor orders that are based on uncertain customer demand)
Important that suppliers be linked to the manufacturer’s production schedule
Ruso [email protected]
Push/Pull View of Supply Chains
Supply chain processes fall into one of two categories depending on the timing of their execution relative
to customer demand
Pull: execution is initiated in response to a customer order (reactive)
Push: execution is initiated in anticipation of customer orders (speculative)
Push/pull boundary separates push processes from pull processes
Useful in considering strategic decisions relating to supply chain design – more global view of how
supply chain processes relate to customer orders
Can combine the push/pull and cycle views
The relative proportion of push and pull processes can have an impact on supply chain performance.
Ruso [email protected]