CLASS 10 Supply Chain Models

SUPPLY CHAIN MODELS
ENGLISH TEACHER: GIOVANNA FERNANDEZ

www.senati.edu.pe
OBJECTIVE OF THE CLASS
At the end of the class,

students will identify the
types of supply chain
models using technical
vocabulary.
www.senati.edu.pe
What comes to your mind , when you listen to the topic : supply chain
models?
www.senati.edu.pe
What are the supply chain models?
❑ Imagine a business as a well-oiled
machine: the supply chain would be the
oil that keeps it running. The supply chain
involves all of the logistics of producing
and selling commercial goods.
❑ It is the entire process beginning with
resource acquisition, then continuing
through to product development and
delivery to the vendor.
❑ It’s the process by which manufacturers
secure the resources to produce products
and how those products are delivered to
the point of purchase.
www.senati.edu.pe
What are the supply chain models?
❑ A sustained quality management

of supply chain is necessary for
every company to remain
competitive and for the global
economy to stay healthy.
❑ To properly manage and protect
supply chains, people must be
aware of the six different models
that can be employed.
www.senati.edu.pe
Supply chain models
• Supply chains are complex

structures, and their best
practice can vary from
industry to industry.
www.senati.edu.pe
Types of supply chain models
✓ Continuous Flow ModelSafety

✓ Agile Model
✓ Fast Chain Model
✓ Flexible Model
✓ Custom Configured Model
✓ Efficient Chain Model
www.senati.edu.pe
Continuous Flow Model
• This is one of the most

traditional supply chain
models and is best suited
for mature industries that
operate with a certain
degree of stability.
www.senati.edu.pe
Continuous Flow Model Example
PepsiCo is a well-known example of a continuous

supply chain model. The company’s family of
drinks and foods maintains a large customer
base with little to no variety in demand no matter
the season or market conditions. PepsiCo has
set up the logistics of its delivery system to
continuously receive ingredients to produce its
food and beverages, and likewise continuously
restock vendors.
www.senati.edu.pe
Agile Model Types of supply chain models
• This model of supply chain is best suited for industries that deal with unpredictable
demand and products that are made to order.
www.senati.edu.pe
Agile Model Types of supply chain models
• The agile mode has the market sensitivity

component that changes the rate of production
immediately with any changes in demand. This
model is a great fit for businesses that exist in
markets with a high degree of demand variation.
• Such is the case for fashion company ZARA. ZARA
exhibits agility by keeping its designers vigilant in
the spotting of new trends. As soon as ZARA’s
designers identify a potential trend, they
immediately draw up sketches and order new
materials.
www.senati.edu.pe
Fast Chain Model
The three main capabilities of this
model are:
❖ From concept to market in a

short time
❖ Highest forecast accuracy to
reduce market mediation cost
❖ End-to-end efficiency to ensure
affordable costs for customers.
• This supply chain model is best suited for industries that manufacture a trendy product
and has a short life cycle, such as fashion items.
www.senati.edu.pe
Fast Chain Model
A fast model is most often used by businesses

that manufacture finished products with a short
market lifecycle, making it the most common for
the delivery of products considered to be trendy.
This model applies when a business changes its
products frequently, delivering them to market
before a trend loses its relevance. One example
is Nike.
www.senati.edu.pe
Flexible Model
Four main capabilities of this model

are:
❖ Stock-pile of critical resources
❖ Rapid-response capability
❖ Technical strengths in process
and product engineering
❖ A process flow designed to be
quickly reconfigurable.
• This model is best suited for industries with no unexpected demands or

relatively predictable demand peaks and long periods of low workload.
www.senati.edu.pe
Flexible Model
❖ The flexible model provides businesses the ability to
meet peaks of high demand as well as long periods
where demand is low.
❖ There are three components a supply chain must have
to be considered a flexible model: part segmentation,
accurate stocking algorithms and flexible planning.
❖ This diversifies suppliers and incorporate automation
on factory floors.
❖ Staples’ paper and writing utensil products are
produced and delivered via a flexible supply chain.
❖ Staples anticipates high demand during back-to-
school season and stocks its stores with excess
notebooks, paper, pens, pencils, rulers and other
school supplies.
www.senati.edu.pe
Custom Configured Model
• As the name suggests, this model’s

primary focus is on providing custom
configurations, especially for
assembly and production processes.
• It is a hybrid combination of the agile
model and the continuous flow
model.
www.senati.edu.pe
Custom Configured Model
• Essentially, a combination of the agile and continuous

flow models, a custom-configured model is ideal in
scenarios where multiple product configurations are
required. Whenever there are consumer customization
options, it’s likely that a custom-configured model is in
use. This can be seen in a company like L.L. Bean,
which invites customers to customize their backpacks
before placing an order. The market for backpacks
stays pretty consistent, aside from the demand spike in
the late summer, but L.L. Bean has to be prepared for
when one feature of customization becomes particularly
more or less popular.
www.senati.edu.pe
Efficient Chain Model
• This model is best suited for businesses operating in

highly competitive markets where in pricing plays a
large part and businesses are fighting for the same
group of customers.
• Management must maximize the utilization of

machinery and other assets at their disposal to
maintain high overall equipment efficiency and a
resultant reduction in cost.
www.senati.edu.pe
Efficient Chain Model
• The efficient chain model is best for businesses that are in

highly competitive environments and must strive for high
efficiency in their delivery logistics to retain a competitive
advantage.
• This model prioritizes proper inventory management and
maximizing output from production equipment and labor.
• General Mills uses an efficient chain model as it develops
products relatively similar to its competitors and sells to the
exact same audience as the competition.
• With tight competition and thin margins in the breakfast cereal
market, General Mills knows that a lot of its profit will be found
in reducing costs along the supply chain while ensuring
vendors can keep their products in stock.
www.senati.edu.pe
Let’s practice in kahoot!
https://create.kahoot.it/share/
supply-chain-models/f6e6ca0f-
7945-47bc-adb3-
21be5d24beb9
www.senati.edu.pe
www.senati.edu.pe

CLASS 10 Supply Chain Models

Uploaded by

Copyright:

Available Formats

CLASS 10 Supply Chain Models

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CLASS 10 Supply Chain Models

Uploaded by

Copyright:

Available Formats

SUPPLY CHAIN MODELS

ENGLISH TEACHER: GIOVANNA FERNANDEZ

At the end of the class,

❑ A sustained quality management

• Supply chains are complex

✓ Continuous Flow ModelSafety

Continuous Flow Model

• This is one of the most

Continuous Flow Model Example

PepsiCo is a well-known example of a continuous

• The agile mode has the market sensitivity

❖ From concept to market in a

Fast Chain Model

A fast model is most often used by businesses

Four main capabilities of this model

• This model is best suited for industries with no unexpected demands or

• As the name suggests, this model’s

• Essentially, a combination of the agile and continuous

• This model is best suited for businesses operating in

• Management must maximize the utilization of

• The efficient chain model is best for businesses that are in

You might also like