SCM PART II
Decision Phases in SCM
The Evolution of SCM
Basis of Conceptual Model of SCM
Decision Phases in SCM
Decision phases can be defined as the different stages involved in supply chain management for
taking an action or decision related to some product or services. Successful supply chain
management requires decisions on the flow of information, product, and funds that fall into three
decision phases.
The three main decision phases involved in the entire process of supply chain are described below −
Supply Chain Strategy
In this phase, decision is taken by the management mostly. The decision to be made considers the
sections like long term prediction and involves price of goods that are very expensive if it goes
wrong. It is very important to study the market conditions at this stage.
These decisions consider the prevailing and future conditions of the market. They comprise the
structural layout of supply chain. After the layout is prepared, the tasks and duties of each is laid
out.
All the strategic decisions are taken by the higher authority or the senior management. These
decisions include deciding manufacturing the material, factory location, which should be easy for
transporters to load material and to dispatch at their mentioned location, location of warehouses for
storage of completed product or goods and many more.
Supply Chain Planning
Supply chain planning should be done according to the demand and supply view. In order to
understand customers’ demands, a market research should be done. The second thing to consider is
awareness and updated information about the competitors and strategies used by them to satisfy
their customer demands and requirements. As we know, different markets have different demands
and should be dealt with a different approach.
This phase includes it all, starting from predicting the market demand to which market will be
provided the finished goods to which plant is planned in this stage. All the participants or
employees involved with the company should make efforts to make the entire process as flexible as
they can. A supply chain design phase is considered successful if it performs well in short-term
planning.
