Supply chains were once static entities, chained from one supplier to one customer. Static, but still efficient.
Once corporations began to grow, so did their supply chains. It is always changing in accordance with the expansion and contraction of market share for a given corporation. At first, this allowed them to overtake smaller companies, conglomerating into mega-companies.
As time went on, multinational corporations streamlined their supply chains as they grew. New models emerged to meet the demands of globalization.
There have been nine prominent supply chain models. Keep reading to learn about several.
Continuous flow supply chain models are an efficient and cost-effective way to move products to a customer. The supply chain design focuses on reducing costs and inventory. In this model, goods are sourced, produced, and delivered directly to the customer on a continuous basis.
The standardized flow requires pre-planning. It also requires maintaining a steady level of production to prevent disruptions. Continuous flow models rely on the fluidity of stock and frequent demand replenishment. Stock levels on hand never become too low.
In this model, organizations utilize existing technology for optimization and increase production speed. This model allows them to source and deliver goods quickly, manage inventory, and improve customer service. By proactively building relationships, companies are able to increase profitability. Utilizing more efficient processes can also help.
Fast chain models revolve around the concept of rapidly getting goods. This is from point A to point B. This system can use existing logistics networks, such as rail and air. This quickly moves materials, products, and services.
Agile supply chain models are an emerging way of enabling efficient supply chain processes. An Agile supply chain model is designed for rapid response to changing customer needs. This is through combining concepts from the traditional Lean and Agile supply chain models.
It takes into account both external market forces, such as customer demand and pricing. The internal performance of the organization is to develop and deploy new strategies and solutions. This is in terms of its capability.
Custom-configured is a software-as-a-service (SaaS) platform. This provides companies operating in the retail and consumer markets. It comes with a set of features to help them effectively manage their supply chain operations.
Custom-configured can help companies design, deploy, and manage custom supply chain models. This is to meet their specific business needs. Custom-configured models are commonly used in the following:
- supply chain management
- inventory management
- warehouse management
Once you have determined the right chain model for you, it’s now time to look for a warehouse rental space to get this started!
Learn More About The Different Types of Supply Chain Models
In sum, exploring different types of supply chain models arms organizations with essential tools to make efficient and effective decisions when managing their supply chain strategies.
It’s crucial that businesses consider their needs when designing their supply chain and shape the best fit for their particular situation. Therefore, if you’re not examining the full range of supply chain models for your organization, now is the time to do so.
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