Supply Chain Processes in a Manufacturing Company

- by Manish Jain *

Page - 1

People often talk about supply chain strategies to cope-up with the ever-changing trends and expectations of market. Sometimes, we are so carried away in strategizing that we ignore the operational level processes involved in a supply chain, which results in
unexpected inefficiencies in the system. Hence, it becomes paramount for a supply chain professional, who is fresh in corporate world, to have at least a broad overview of different supply chain processes, which will further help him in aligning any supply strategy in a better fashion.

Keeping this in mind, this paper focuses upon broad processes of supply chain inside a manufacturing facility. The overall processes involved in any end-to-end supply chain, i.e., right from supplier to customer are numerous as well as complex, for the sake of brevity, and to make this paper less cumbersome for the readers, I have considered supply chain processes inside a manufacturing facility only.

Assumptions

1. Company has an ERP system.

2. Company follows "Make to Order" strategy, i.e., goods are manufactured when purchase order is received from customer.

Supply chain process inside a manufacturing company starts from receiving a customer purchase order, subsequently requisite raw material in desired quantity is arranged as per the production plan of manufacturing, after which it is packed and dispatched.

Following is a broad flow chart of supply chain inside a manufacturing facility: -

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Manish Jain is B.E. Mechanical from MBM Engineering College, Jodhpur, and holds PGDIE qualifications from NITIE, Mumbai (Class of 2005). He has worked for a year at TVS Electronics, Chennai, in Sourcing & Production Planning, and is currently working as Dy. Manager (Supply Chain) at Fibcom India Ltd., Gurgaon.

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