Supply Chain Basics Course - Supply Chain is the Future! What is Supply Chain? - Part I
Summary
TLDRIn this informative video, Alvis Lazarus from supplychainway.com introduces the basics of supply chain management through a relatable story of a mother preparing lunch for her son. The narrative illustrates key supply chain activities, from demand planning to distribution, involving stakeholders like suppliers, manufacturers, retailers, and customers. The video aims to clarify the concept for those curious about supply chain careers or the field in general, providing a simple yet comprehensive model of the supply chain process.
Takeaways
- 🔍 The competitive edge for organizations has shifted from manufacturing efficiency to supply chain management due to widespread adoption of best practices.
- 📚 The focus of the video series is to provide a basic understanding of supply chain concepts for those interested in building a career in this field.
- 👩🍳 A story about a mother preparing lunch for her son is used as a metaphor to explain the supply chain process in simple terms.
- 📝 Demand planning is the first step in the supply chain, where the mother notes down her son's favorite dishes, representing customer preferences.
- 🛒 Supply planning involves the mother deciding on the ingredients needed and the vendors who can provide them, akin to sourcing and procurement in a business context.
- 📅 Production planning includes deciding on the dishes and timing for the meals, which is similar to scheduling production in a supply chain.
- 🛍️ Purchasing ingredients from the vendor is analogous to sourcing in a supply chain, where raw materials are acquired for manufacturing.
- 🍽️ Manufacturing is represented by the mother preparing the lunch based on the son's daily request, reflecting the production of goods in response to demand.
- 🚚 Distribution is symbolized by the neighbor delivering the lunch to the son, which is the final step of delivering products to the customer in a supply chain.
- 👦 The son represents the customer in the supply chain, who places orders and receives products.
- 🏢 The mother is the manufacturer, the vendor is the supplier, and the neighbor is the distributor or retailer, highlighting the key stakeholders in a supply chain.
Q & A
What is the focus of competitive advantage for organizations in the manufacturing industry today?
-The competitive advantage for organizations today has shifted from manufacturing capability and efficiency to the supply chain, emphasizing the importance of the big picture in operations.
What are some of the best practices in manufacturing that have leveled the playing field?
-The widespread adoption of best practices from the Toyota and Ford production systems has contributed to a more even playing field in manufacturing.
Who is Alvis Lazarus and what is his role in the video?
-Alvis Lazarus is the Supply Chain coach in the video, presenting a series of videos to help viewers understand the basics of supply chain management.
What is the purpose of the video series on supplychainway.com?
-The purpose of the video series is to discuss multiple topics that will help viewers understand the basics of supply chain, whether they are planning a career in supply chain or curious about what it entails.
What is the main subject of the specific video discussed in the script?
-The main subject of the video is to explain what a supply chain is, who all are part of it, and what the key activities within it are.
How does the video use a story to explain the concept of supply chain?
-The video uses the story of a mother who wants to send home-cooked lunch to her son to illustrate the various steps and activities involved in a supply chain, such as demand planning, supply planning, sourcing, manufacturing, and distribution.
What is the role of the mother in the supply chain story presented in the video?
-In the story, the mother acts as the manufacturer, responsible for planning, sourcing ingredients, and preparing the lunch based on her son's daily needs.
Who are the key stakeholders in the supply chain model described in the video?
-The key stakeholders in the supply chain model are the supplier, manufacturer, retailer, distributor, and customer.
What does the video suggest as the starting point of the supply chain engine?
-The supply chain engine starts with demand planning, which provides demand forecasts to supply planning, leading to purchase and production orders.
How does the video script define the roles of the son and the neighbor in the supply chain story?
-In the story, the son represents the customer, and the neighbor acts as the distributor or retailer, responsible for delivering the lunch to the son.
What is the final step in the supply chain process as described in the video?
-The final step in the supply chain process is the distribution of the finished product to the customer, either through an online retailer who ships the product or an offline retailer where the customer picks up the product.
Outlines
🍽️ The Story of a Mother's Supply Chain
This paragraph introduces the concept of supply chain through a relatable story about a mother who wants to send home-cooked lunch to her son. The mother's process of planning, sourcing ingredients, and preparing the food is likened to the key activities in a supply chain. The story outlines steps from demand planning, where the mother notes her son's favorite dishes, to supply planning, where she decides on the necessary ingredients. It then moves on to sourcing, where she chooses vendors, and production, where she prepares the food. The story concludes with distribution, represented by the mother's neighbor delivering the lunch to the son. This analogy is used to simplify the understanding of a complex supply chain model.
🔄 Translating the Story into a Basic Supply Chain Model
The second paragraph builds on the mother's story to explain the basic components of a supply chain model. It identifies the key stakeholders: the supplier (vendor), manufacturer (mother), distributor/retailer (neighbor), and customer (son). The paragraph outlines the supply chain process, starting with demand planning, which leads to supply planning, followed by purchase orders, production orders, sourcing, manufacturing, sales orders, and distribution. The summary clarifies the roles each stakeholder plays in the supply chain and emphasizes the importance of each step in delivering the final product to the customer. The paragraph concludes by inviting viewers to ask questions in the comment section for further clarification, ensuring an interactive and informative learning experience.
Mindmap
Keywords
💡Competitive Edge
💡Supply Chain
💡Demand Planning
💡Supply Planning
💡Purchase Order
💡Production Order
💡Sourcing
💡Sales Order
💡Manufacturing
💡Distribution
💡Stakeholders
Highlights
The Competitive Edge for organizations now lies in supply chain management rather than just manufacturing capability and efficiency.
Best practices in manufacturing have leveled the playing field, shifting focus to the supply chain.
Introduction to the basics of supply chain by Alvis Lazarus, a Supply Chain coach.
Discussion on building a supply chain career and understanding the supply chain field.
Exploration of who is part of the supply chain and key activities involved.
A story is used to simplify the concept of supply chain, involving a mother preparing lunch for her son.
Demand planning is illustrated through the mother noting her son's favorite dishes.
Supply planning is shown by the mother planning for ingredients based on her son's preferences.
The mother's selection of vendors for ingredients represents the sourcing process.
Scheduling the dishes and timings for the week is akin to production planning.
The mother's daily preparation of lunch based on her son's request is manufacturing in the supply chain.
The neighbor's role in delivering the lunch to the school is the distribution aspect.
Translation of the story into a basic supply chain model with key activities.
Identification of key stakeholders in the supply chain: supplier, manufacturer, retailer, and customer.
The supply chain engine starts with demand planning and moves through supply planning, purchase orders, and production orders.
The process of how suppliers ship parts to manufacturers and finished goods to retailers.
The customer's interaction with the supply chain through placing orders with the retailer.
Differentiation between online and offline retail experiences for the customer.
Invitation for viewers to ask follow-up questions or seek clarifications in the comment section.
Transcripts
Decades before,
the Competitive Edge for each organization lies in their ...
manufacturing capability and efficiency.
Due to wide spread adoption to the best practices on ...
manufacturing from the Toyota production system and ...
the Ford production system within the manufacturing shop ...
floor the game has become all even and the focus obviously
Has shifted from the manufacturing shop floor to ...
the big picture - the supply chain hello everyone welcome ...
to supplychainway.com I am Alvis Lazarus your Supply ...
Chain coach in this video series we call it as the basics ...
of supply chain we will discuss multiple topics which will help ...
you understand the basics of supply chain.
so if you are planning to build a supply chain career or ...
interested in knowing what is supply chain and if I get into a ...
supply chain career what kind of experience I will be getting ...
those kind of questions will get answers part of this series ...
so specifically in this video what we're going to see is.
What is supply chain who are all part of supply chain and ...
what are all the key activity is part of supply chain answers ...
to these three questions through this video so let's get ...
it started. So what I'm going to do or to ...
keep it really simple I'm going to tell you a story and then ...
explain what is a supply chain so this is a story of a mother ...
who wants to send home to lunch her son.
on a daily basis okay so let's hear the story so that is a ...
mother and there is a son as you can see from the picture ...
that the son is doing his schooling and the mother ...
wants to send home cooked food to son on a daily basis.
Okay so now the step one.
What happens is is the mother sits with his son and ...
ask him what are all his favorite dishes,
she wants basically the mother notes down all the ...
favorite dishes of her son for lunch and all the relevant ...
details around that. So that is the step number ...
one and once she does that basis that the mother plans for ...
all the needed ingredients to prepare the food for her kid.
The step #3, the mother basis the list of ...
ingredients she decides the vendors who can get those ...
ingredients for her. Though I'm showing a single ...
picture of a vendor there could be few vendors the ...
mother can go and buy those ingredients in few cases the ...
vendor can come in and deliver those ingredients to ...
the mother. The mother decides on the ...
dish and timings basically she has to plan for the month or at ...
least for the week to tell okay this is what my son needs for ...
this week once the planning is completed,
now the mother buys all the ingredients from the.
Vendor. so now she's ready with all ...
the ingredients Now what happens the son tells his mom ...
on a daily basis what he needs as lunch for today ...
Basis that the mother prepares the lunch on a daily ...
basis and keep the food ready Once the food is ready.
What is still remaining is the food should reach the son at ...
the right time unfortunately she couldn't get the food to ...
the school so what she has done is took the help of her ...
neighbor to get the lunch to her son so that completes the ...
story of a mother who wants to send home-cooked lunch to ...
her son. Now what we will do we will ...
now translate this into a basic supply chain model so the ...
mother notes down all the favorite dishes of her son for ...
lunch that is actually demand planning and bases the ...
demand that is Basis what her son says she's she's planning ...
for all the ingredients that becomes the supply
planning and basis the supply plan she is then telling the ...
vendor what are all the things she needs that becomes the ...
purchase order and deciding on the dish and timing ...
depending on the time she needs for cooking and ...
depending on the weekly and the monthly plan that ...
becomes a production order and buying all the ingredients ...
from the vendor becomes the sourcing the son telling his ...
mom what he wants for the day that becomes the sales ...
order and the mother preparing the food is the ...
manufacturing and the neighbor getting the food to ...
school that becomes the distribution okay so these are ...
the activities part of the supply chain now the mother ...
the son the vendor the neighbor what are all the roles ...
actually they played part of the supply chain is what has ...
to be revealed. So the son
is the customer and the neighbor is the distributor or ...
retailer the mother is the manufacturer and the vendor ...
is the supplier. Now the story has been ...
translated to a basic supply chain model so now I'm going ...
to explain you how does supply chain model looks like ...
so these are all the key stakeholders within the supply ...
chain supplier manufacturers retailer and customer Though ...
I have said as a retailer that could be multiple levels of ...
Distributors and retailers part of the distribution Channel ...
once we started discussing on specific industry then I will ...
explain and elaborate on the role played by a distributor on ...
a retailer within the overall supply chain.
These are the four key stakeholders within the supply ...
and the supply chain engine starts with demand planning ...
giving the demand forecasts to the supply planning and ...
basis the supply plan the purchase orders and ...
production orders are released based on the ...
purchase order the supplier.
Ships all the parts to the manufacturer the ...
manufacturer converts Parts into finished goods the retailer ...
sends the sales order to the manufacturer and the ...
manufacturer that will send the finished products thtough ...
the distribution channel to the retailer the customer's ...
touchpoint is the retailer so the customer places the order ...
on the retailer and gets the Products if it is an online ...
retailer the product is shipped to the customer if it is an ...
offline retailer the customer pick up product from the so ...
this explains the basics of Supply chain model I'm sure ...
you have understood this clearly if you have any ...
follow-up questions or if you have any clarification feel free ...
to use the comment section down to this video to ask ...
those questions I would be happy to answer those for you ...
thank you so much.
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