Multiple linked suppliers

Supply chain. Product life cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy end-user requirements with physical products and services from multiple, linked suppliers. 

We also qualify a supply chain as having multiple, linked suppliers. If we take the point of view of the end-user, a supply chain exists when there are multiple enterprises backing the one who directly hands over the product or service to the end-user. Also, a supply chain could be multiple retail stores representing a single enterprise, the chain. So, under our definition, the neighborhood barber would not constitute a supply chain. A chain of barbershops would be a supply chain. The farmer selling watermelons from his field by the side of the road would not qualify, but the supermarket would because multiple parties have a role in delivering its products. 

Supply chain 1. Life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy end-user requirements with products and services from multiple, linked suppliers. 2. The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash. (Adapted from APICS Dictionary, lOtb edition)... 

To put this tool into perspective, we should begin by reviewing one aspect that occurs within most supply chains, a phenomenon originally noted by Professor Hau Lee of Stanford University. Lee called attention to the fact that a bullwhip effect can be observed as upstream partners in a supply chain experience erratic, volatile demand patterns brought on by consumer signals being passed through multiple links — retailers, distributors, wholesalers, and manufacturers — on their way to the primary suppliers. 

Electronic marketplace/E-commerce In addition to the many databases available and person-to-person contacts, E-commerce in plastics has been conducted through suppliers web sites or the dot-commerce independent web sites that link material buyers with sellers in transactions or auction formats. During the year 2000 five plastic producers/suppliers and various elastomer producers/suppliers created a new and important business model of a joint-venture web site. It provides multiple companies to join forces to do business. This is a strategy some observers call competition and others regard as just another form of selling in. an electronic format. Regardless of how it is perceived, the model will help propel e-commerce into the mainstream of processor procurement due to the size and wealth of the companies involved. The plastic model example is the largest online business-to-business site todate. 

The connectivity pattern determines the paths, connecting any two suppliers, oti which the goods, informatiOTi, and cash may flow in the network. Three different connectivity patterns are usually present in a supply network dyadic, multiple dyadic and multi-channel (Ring and Van de Ven 1992). Dyadic network (one-to-one) refers to the interaction between exactly two companies the path cramects a supplier to another supplier or to a customer. Multiple-dyadic network refers to the interaction of raie company with several other companies (one-to-many or many-to-one). This can take the form of N suppliers and one service provider, or one supplier and N retailers. An example is the relationship between an airline and several independent travel agents, or between a car manufactmer (such as GM) and its multiple dealers. A multi-channel network denotes relationships in which several companies interact with several other companies (many-to-many). Possible interactions include M suppliers linked to N retailers. These connectivity patterns, in a 2-tier network, are shown in Fig. 4.2. 

Consider that a global supply chain consists of suppliers, manufacturing plants, distribution centers (DCs), and customer zones that are located in different locations. There are multiple transportation links available between each pair of facilities. Raw materials are shipped from suppliers to plants in order to produce finished products. Finished products are then shipped to DCs to support customer demand. A physical representation of a global supply chain is shown in Figure 7.2. 

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