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Lecture 27 : Supply Chain Operational Views — Transcript

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0:01[Music]
0:22[Music]
0:26hello dear students welcome back to nptl
0:29online course on Logistics and Supply
0:31Chain management so in the last session
0:33we discussed about few challenges coming
0:36in terms of either your demand
0:39uncertainty or Supply uncertainty right
0:42so we talked about some of the
0:43mitigating strategies how we can counter
0:46these uncertainties throughout the
0:48supply chain so that the smooth flow of
0:50the material or the supply can be
0:53ensured throughout the supply chain from
0:55the starting point to the end
0:57consumption point right today we will
1:00talk about some of the operational
1:02models of supply chain which will ensure
1:05how we can you know integrate all the
1:08stakeholders all the activities in one
1:11chain so that these uncertainties can be
1:14minimized and the overall Effectiveness
1:17and efficiency can be improved right so
1:19under this we'll discuss the very basic
1:22model of supply chain that is score
1:23model and then we'll discuss about your
1:27elements of the supply chain operational
1:30model what are those elements then we'll
1:32talk about these two different
1:34perspective of supply chain one is your
1:36cyclic view another one is pushp BU and
1:39we'll discuss about some small case as
1:41well and how these three different
1:43operational perspectives will help you
1:46to you know meet all the challenges
1:48which are coming through your supply
1:51chain right so we talked about supply
1:55chain uncertainty or demand uncertainty
1:57which can come through your supply chain
2:00and we'll see how this score model
2:02offers a comprehensive framework
2:04starting with your first supplier
2:08suppliers of supplier through your
2:10manufacturer distributor warehouses and
2:12then finally to the end consumer so
2:14complete comprehensive framework we see
2:17how it will help you to mitigate those
2:19uncertainties and then the other
2:21perspective which I talked about process
2:23and cyclic view where we'll view all
2:26their supply chain activities as a kind
2:28of you know ccle of some activities
2:31right and each cycle is happening
2:34between the interaction of any two
2:36stakeholders one cycle is happening
2:38between customer and distributor
2:40distributor and manufacturer another
2:42cycle manufacturer and raw meterial
2:43supplier another cycle right so that is
2:46another perspective we'll go for so
2:49let's talk about quickly the supply
2:50chain operation reference model given by
2:52supply chain Council who has given so
2:54many different tools to improve the you
2:56know supply chain processes over the
2:58time right but this score model is the
3:01basic building block for you know uh
3:04build your distributor systems quickly
3:07quickly and be with performance because
3:11it will include all your major processes
3:14through all the stakeholders and these
3:16five major processes in terms of plan
3:18Source make deliver and return the final
3:21product and when we are implementing
3:24these five major activities throughout
3:26all the stakeholders we'll keep uh
3:29tracking your five performance measures
3:33reliability how reliable is the delivery
3:36how quickly we are responsing to the
3:38customer demand how asile our supply
3:41chain is to you know flexibly handle all
3:44the uh demands how efficient we are with
3:47the minimum cost we are delivering and
3:49finally how we are managing the assets
3:52whether it is working Capital management
3:54or other asset fixed asset you are
3:56managing throughout your supply chain or
3:59you are using right so plan is obviously
4:02planning scheduling and coordinating
4:04resources to meet customer demand
4:07efficiently right so this is usually we
4:11are using this for manufacturing
4:13purposes which depends upon when you
4:16will get the demand insights then you
4:18will start planning these activities
4:20right and then you'll go for scheduling
4:23uh for uh you know all the processes
4:26this process will be done at what time
4:28and how much time you you need to run
4:30that particular process that depends
4:32upon how much that particular product is
4:35required in the market right Source
4:37depending upon that you are sourcing the
4:40supplies materials and in that sourcing
4:42you are negotiating with for the quality
4:45for the quantity and for the price right
4:47basically for this and then for the
4:49delivery as well right how quickly you
4:52want how many orders you will be placing
4:54lot size what will be right so those
4:56kind of things make then it is the
4:58within the manufacturing organization it
5:01can be the supplier organization as well
5:02where they are getting raw material from
5:04somewhere else and doing the making part
5:07converting their raw material into their
5:09finished one that finished one may be
5:11the raw material for the next
5:13organization right so manufacturing
5:16assembly or product how you are
5:18producing finally we will talk about the
5:20distribution Network how we are
5:21recording the orders from the customer
5:24how those uh recorded orders are
5:26processed through the warehouses right
5:28and then how we are keep keeping the
5:30inventory in the warehouse and how we
5:31are ensuring the final delivery of the
5:33product return if any product didn't
5:37customer did not like returning back how
5:39we manage that how we resell that we'll
5:42keep quickly on the selling shelf so
5:45that again we can consume that in the
5:46market repairs if any coming how we'll
5:49address that recycling or disposal of
5:51the end used product after the end life
5:55how we'll ensure that so you can see we
5:57have these players where suppliers of
6:00suppliers are there this supplier is
6:02getting supplies from first supplier and
6:05these we can consider for our company if
6:08we are manufacturer these are the major
6:10raw material suppliers right so we are
6:13getting all the supplies from these
6:14suppliers and then in that supply chain
6:17our customer is there customer may be
6:19your distributor retailer retailer is
6:22also your customer in that way or you
6:23can say here the distribution
6:26Network all the players included in your
6:29distribution Network right and then
6:32finally customer and where you are
6:34consuming see all those five steps we
6:37are using here we are using here we are
6:40using here but here we are using two
6:42steps because suppliers supplier will
6:45deliver or maybe if the products are not
6:48okay will be return back right but if
6:51I'm talking about supplier the second
6:54stage supplyer who is doing some value
6:56adding activity in that raw materials
6:58received from the first supplier then he
7:00will what we will do he will plan for
7:03the supply and his plan will be you know
7:06replicated from the plan of the
7:08manufacturer and then planning after
7:11planning he will source that this
7:12particular vendor I'll get these many
7:15supplies these many Lots or quantity
7:17then we will make that maybe convert
7:20that value adding activity I was talking
7:21about will be done here then we will be
7:24delivering to the manufacturer deliver
7:26right if any damage is there we'll go
7:29again that will be Supply from the
7:31manufacturing unit will be supplied by
7:33the uh supplied back to the supplier
7:36right this is how complete cycle is
7:38working within the manufacturing
7:39organization also the complete cycle
7:42same all five stages plan how we are
7:45making the plan here strategic planning
7:47from the retail chain how they are
7:50saying about the orders how many we need
7:53to uh you know distribute the inventory
7:56uh to that particular market so that
7:58will be coming from the distribution
8:00Channel who is serving in that
8:01particular Market accordingly we'll
8:03Source these many raw material
8:06components we require we make we deliver
8:09and same cycle will be happening with
8:11the distribution Network as well where
8:13they will be you know making here
8:16distribution network is a kind of thing
8:19that maybe packaging or some other
8:21kitting kind of services you are doing
8:23that is kind of making you can consider
8:25right so and then finally the End
8:28customer uh uh again will'll Source we
8:31purchase from the distribution chain or
8:34through online whatever it is and then
8:36if it is not okay will return back right
8:38so this is the supply chain operation
8:40reference model which is basic for all
8:43you know uh supplies but we'll discuss
8:47about what are the limitation of this uh
8:50basic model right quickly we'll talk
8:52about four Ps of this model she's
8:54talking about major elements first is
8:56performance which we talked about in
8:58terms of Rel reliability how reliable
9:01your supply chain is to deliver the
9:03particular quality and quantity to the
9:06particular market right responsiveness
9:08agility with minimum cost and how
9:12efficiently you are managing your assets
9:14so that you are exhausting the full
9:15capacity of the warehouse full capacity
9:17of the container who is shipping the
9:19product manufacturing facility
9:21productivity is very high with minimum
9:23output you are getting the maximum
9:24output those kind of performance
9:26measures you need to track right process
9:30what are the processes these are the
9:32obviously whatever activities value
9:34adding activities you are doing is
9:36backbone of this can be of any framework
9:39right so here also these activities uh
9:42we need to uh we are looking here
9:44towards the standardization process how
9:47we can standardize the plans sourcing
9:49make it's not that every time we are
9:51getting the plan from the distributor
9:53and manufacturer started you know you
9:56know developing new vendors so it is not
9:59always it is happening sourcing means
10:01once sourcing is done the repetitive
10:03purchasing will be there right then
10:05practices method technique tools which
10:08we are using you know in that way so
10:10that we can optimize the uh whatever
10:13activities we are doing we if we can
10:15optimize we can reduce the cost and we
10:18can improve the services level in terms
10:20of the minimum delivery time we can
10:23ensure and people because all the
10:25stakeholders we have seen suppliers of
10:27suppliers suppliers manufacturers maybe
10:31co-manufacturers distribution chain and
10:33end consumer how we can collaborate as a
10:36team and how we can ensure the
10:38continuous Improvement when we are
10:40talking about the employees working
10:42within the organization we are talking
10:44about the raw material suppliers who are
10:45working in collaboration with us to
10:48upgrade their technology to upgrade
10:50their skill it's our responsibility
10:52because if we can upgrade them they can
10:55provide the quick flexible supplies with
10:58maximum quality and reducing the cost
11:01right so this is how you can see the
11:04score model is based on these four piece
11:06right we already talked about
11:08performance measures practices we need
11:10to ensure people how we can retain
11:13sustain for longer term and can you know
11:17upskill res skill those people uh every
11:20you know people in terms of long-term
11:22assets right so and then processes how
11:25we can standardize those processes so
11:27that we can reduce the overall
11:28operational cost right so talking about
11:31score performance Matrix different
11:34parameters are there but if we'll divide
11:36all those different par Club all those
11:38different parameters in into some
11:40categories we can have these four
11:42categories supply chain reliability can
11:44be one which we talked
11:46about right these four categories
11:49reliability means product are delivered
11:52in correct quantity and right condition
11:55right that quality is not degraded when
11:57you are you were shifting or or handling
12:00or storing the product in your Warehouse
12:02simply responsiveness with what speed
12:05you responded to the customer query it's
12:07not only delivering with speed it's
12:10delivering the services with speed if
12:12anything goes wrong with the
12:13installation how quickly your the best
12:16engineer is visiting and then how
12:18quickly he is addressing the queries at
12:20the customer end right then supply chain
12:23cost this will be only minimized when
12:26you are maintaining you know efficiency
12:28throughout the network of delivering the
12:30product from the starting supplies to
12:32the End customer and assess management
12:35how you are managing your working
12:37capital working capital if you are
12:38investing too much keeping inventory so
12:41that means that you are not efficient in
12:44that way managing your working capital
12:46how you can minimize the inventory is
12:48one example of you can manage working
12:50capital right so fixed assets so whether
12:53you need this much bearhouse capacity or
12:57you are you know consuming extra
13:00capacity in that terms maybe extra
13:02resources so that you are not you know
13:05in that terms asset management is not
13:08done efficiently some of the advantages
13:11of score model you can apply this
13:13through the entire supply chain we can
13:15use these measures for benchmarking the
13:17practices we can develop the metric and
13:20we can after developing those
13:22performance measures we can align all
13:25our activities as per that metric right
13:28and then common repository which will
13:31work as a common uh you know uh in terms
13:34of performance measurements or in terms
13:36of tool set we can use and we can
13:38standardize this whole process so that
13:40because it is repetitive in nature every
13:42day we need to plan every day we need to
13:44Source some material convert that
13:46material into finished one make deliver
13:49and then everyday returns are coming
13:51back you can see how many times you are
13:52returning the product from purchased
13:54from Amazon Flipkart and all that so if
13:58I'll say
13:59uh again this is the plan the overall
14:02picture and then we are
14:05sourcing and then we are making here we
14:09are
14:12delivering and then finally the return
14:15may
14:17happen see the very basic disadvantage
14:21of score model is it cannot be applied
14:24to Services
14:26industry right so see make and deliver
14:32and return return is not at all possible
14:35in Services industry right if you took
14:38services from some airline industry or
14:40hotel industry even if you are not
14:43satisfied with the services after
14:45consuming Services you cannot return
14:47those services but if I'm not satisfied
14:49with the quality of this writing pen I
14:52can again if it is in warranty period I
14:55can return it back but you cannot return
14:56the services in that way right May
14:59making and deliver cannot be two
15:01different stages in the services
15:03industry you are making at the same time
15:05you are delivering right so services are
15:07something that if you are going to again
15:10very common example of you going for
15:12head massage to the barabo shop so then
15:14making and delivering is happening
15:16because customer is part of that supply
15:19chain right sourcing also sometimes
15:22product you can Source but Services you
15:24cannot prepare half Services before
15:26reaching the customer and then you are
15:28delivering so whatever you are
15:30Manufacturing Services that will happen
15:32in the presence of the customer only
15:34right so this is the very basic
15:37limitation that score Mo model cannot be
15:39applied as it is to the services
15:42industry
15:43complexity this because all be we are
15:46applying all those five stages for all
15:48the players and it may be difficult to
15:51align all those things for all the
15:53stakeholders already supply chain is
15:56very complex where you know as a
15:59distribution partner you are not having
16:00single retailer you are having you know
16:03different online platforms Amazon eBay
16:07and flip cart and you are Walmart all
16:10those players are there from where you
16:11are purchasing you are purchasing
16:13through local shops you are purchasing
16:15through maybe onetop solution Market you
16:17are purchasing through my personal own
16:19website so that means already supply
16:22chain is very complex one size fits all
16:25approach it is also very difficult
16:27because the requirement of each products
16:29are different right so these stages
16:33Source making delivery planning all
16:37stages cannot be applied to all the
16:39markets lack of flexibility because now
16:41we are fixed around five areas only so
16:44what about if something unexpected
16:46disaster happens that is not taken care
16:48in this model talking about limited
16:51scope already I told you Services
16:53industry it cannot be applied and then
16:54we are never talking about
16:56sustainability social responsibility all
16:57those things we are not taking care we
16:59are taking care of the major activities
17:01which are required to run your business
17:04and then because information is required
17:06to process this accurately so then
17:09source of information accuracy of that
17:11information is again Big Challenge
17:13quickly you can go one example of score
17:15model you can see now there is no such
17:17concept of local market and we are
17:20talking about digital supply chain
17:21online retail platforms right that means
17:26this is a kind of platform where Maybe
17:29if I am the manufacturer or seller maybe
17:32I will never meet my customer because as
17:35a customer you are purchasing order from
17:37Flipkart I'm delivering through Flipkart
17:40and then it is how you are consuming the
17:41product right so this is again a kind of
17:44you know that uh how you can Implement
17:48here in uh e-commerce how you can
17:50Implement your score model just to you
17:53know uh integrate your suppliers
17:56customers and contract partners
17:59throughout your supply chain right so
18:01only then when you will be able to
18:03integrate your score model will work
18:06perfectly because in that way you can
18:09quickly share the information when
18:12information is shared quickly and on the
18:14same information all the stakeholders
18:16are making decision it will be more
18:18aligned right so uh this you can see
18:23data can be easily analyzed in
18:25e-commerce and because the basic
18:27requirement of score model is that you
18:29need timely data processed data accurate
18:32data so e-commerce Market electronically
18:35you can share the data right but yes if
18:38you are talking about uh yes those uh
18:41you need to align all those goals of
18:43your distribution Network your Warehouse
18:45your inventory Supply demand all those
18:48you can plan keeping in mind the score
18:51model for if you implementing that for
18:53all the stakeholders but some of the
18:55challenges when you are talking about
18:57the online platforms see fast delivery
19:00right lowcost easy pay methods available
19:03and efficient customer support how you
19:06will ensure that we are not talking
19:08about the after Sal Services right in
19:10terms of and then we are not talking
19:12about the payment methods how these can
19:14be integrated in the score model so that
19:17you can work these models can work
19:19efficiently with the you know Supply
19:22chains so talking about the second
19:24perspective process and cyclic view of
19:26the supply chain so Cy click view of the
19:29supply chain will
19:31uh it is a kind of you know uh different
19:35Cycles are there within uh you know that
19:37supply chain series of cycle we are uh
19:41uh taking care of and then uh how this
19:45we can understand in a better way with
19:47this example you can see this is the
19:49complete supply chain right from here
19:51the product is Flowing so we identified
19:55four different cycle first is
19:56procurement cycle that is happening
19:58between the supplier and
20:00manufacturer when your procurement will
20:02start when you'll place your order with
20:04the supplier that okay and then
20:06manufacturer cycle you distributor will
20:09place the order then manufacturing cycle
20:11will start between distributor and
20:13manufacturer replenishment cycle will be
20:16between retailer and distributor and
20:18finally customer order cycle will be
20:20between customer and retailer so these
20:23four Cycles are there which are you know
20:27uh happening this Cycles are series of
20:29events right so let's talk about any
20:32cycle what is happening actually series
20:34of event usually what is happening
20:37marketers or
20:40sellers markets the product this is the
20:43first
20:45step marketer markets the product then
20:48what happens
20:52next buyer places the
20:56order second stage this is cycle I'm
20:59telling about cycle why places the cycle
21:02then
21:03marketer you know records the
21:08order then next stage
21:11is shipping of
21:15order next is
21:18buyer customer receives the
21:22order and next is if it is not okay
21:26return the order this is how it is
21:27happening so series of cycle so if I'm
21:30talking about replenishment cycle this
21:32is series of cycle so this these steps
21:35can be replicated for all the players
21:37right we'll see in detail what are all
21:40those Cycles right so we'll see what are
21:44the different members in the cyclic view
21:46first is customer already I talked about
21:49customer is approaching to your retail
21:51outlet or whatever way you are you are
21:53providing the online app or you are uh
21:56providing through your organized retail
21:58stores or uh the you know segregated all
22:02those different uh unorganized retail
22:05sector customer will interact with your
22:07retail shops they will be you know
22:10giving their preferences and they will
22:12your retailer will record the order and
22:14we'll Supply the order to the customer
22:16this will be the series of event you can
22:18just keep these uh activities in mind
22:21right everywhere and finally what
22:23happens the change of ownership and
22:25entitlement because earlier the owners
22:28ship was with the retailer now ownership
22:30is transferred to the customer second
22:33player is retailer retailer is
22:35purchasing from the distributor but
22:38retailer is managing the flow of the
22:40goods and services so uh involves the
22:43social movement and storage of raw
22:45material work in progress inventory or
22:47finished goods that depends upon the
22:49nature of the product whether it will be
22:51work in progress or raw material at the
22:53same moment retailer will process it
22:55will assemble it and will hand over to
22:57you as
22:59customer then distributor is another
23:02player in that and retailer is placing
23:04the order with the distributor in that
23:06where distributor is you know
23:09aggregating demand from the all the
23:11local market where he is operating and
23:13then finally communicating this with the
23:16manufacturer right so Services uh
23:20distribution is uh you know principally
23:22concerned with excess if you are talking
23:23about the services distribution is where
23:26the Services Center are located right so
23:29talking about that Logistics
23:30Transportation warehousing storage and
23:32inventory management are the Key
23:34activities which as distributor you are
23:36doing manufacturer again depending upon
23:40whatever demand is there from the
23:41distributor he is process he is sourcing
23:44the raw material he is processing that
23:46raw material from the uh all the
23:49suppliers and then converting into final
23:52product right so so manufacturing
23:55process begins with the creation of the
23:57material from which the design is made
24:00right and then finally the supplier is
24:02there who is the first extreme end of
24:05the supply chain and depending upon
24:08whatever your manufacturer is
24:10communicating the related to the demand
24:12he is designing his you know uh
24:15distribution Network he is manufacturing
24:18in order to supply that product or raw
24:21material to the manufacturer right so so
24:24quickly we'll go through all those
24:26series of event first is your customer
24:28order cycle that is happening between
24:30customer and retailer customer arrives
24:33like I told you in generic terms how it
24:35is happening customer is arriving your
24:37store so here the point
24:41is uh where you are providing the
24:43services so that means where you are
24:45setting up the retail Center and goal
24:47here is to convert the customer arrival
24:49into order right so once it is converted
24:52into order customer order entry is done
24:54so after that you will be recording the
24:57order what is the order right and then
24:59the goal here is the quick entry of the
25:03uh order and then we be communicated to
25:06other supply chain as well that you have
25:08received order from the customer so that
25:10the manufacturing uh players all the raw
25:13material supplier will get that in
25:15intimation that how quickly we are
25:17consuming the product customer order
25:20fulfillment then here customer order is
25:22filled and sent to the customer and
25:25again the inventory is replenished from
25:27where retailer will in replenish the
25:29inventory from the distributor and then
25:31customer order receiving here customer
25:34receives the order he receives the
25:36ownerships and receip records are
25:38updated and payment is done right so
25:41finally the payment is completed second
25:44is replenishment cycle how it happens
25:46between the uh uh retail and distributor
25:51now retail order is triggered right
25:53because customer purchased the order so
25:56he will place the order with the
25:58distributor again the retail order entry
26:00so from different retail shops all the
26:02orders are coming right so distributor
26:04will combine all those orders will
26:06record all those orders right and how
26:09quickly it is depleting the inventory
26:10will record maintain the order right
26:13fulfillment retail uh so all those
26:16retail shops if 50 retail shops are
26:18attached with one distributor so it will
26:21fulfill the orders from coming from the
26:2350 different retail shops right and
26:26Retail order receiving finally all those
26:2850 retailers will receive the order so
26:31this is again replenishment cycle series
26:34of Cycles are happening between these
26:37players right then the third is
26:39manufacturing cycle which is happening
26:41between the distributor
26:44and
26:48manufacturer so again order is arrived
26:51from the distributor then what
26:54production uh unit will do they will
26:57schedule the production for different
26:58models different products different
27:00variety they are having right so they
27:02will schedule the production accordingly
27:05they will schedule means uh what what
27:09type of different products they are
27:10making how much lot of each product is
27:14required uh accordingly they are going
27:16to place the order with the vendors
27:18right manufacturing and shipping once
27:20your production scheduling is done
27:22production is done so manufacturing and
27:25uh your shipping then you will be
27:27packaging the product and then finally
27:29shipping the product to the distributor
27:31or warehouses right and then finally it
27:33is received and distributor and your
27:36inventory is again replenished whatever
27:39inventory you consumed that is again now
27:42filled right and the fourth is your
27:45procurement order cycle which is
27:47happening between the manufacturer and
27:51your raw material supplier so again you
27:54can see here Order based on the
27:56manufacturer production schedule
27:58reaches to the supplier supplier now
28:01will supply uh schedule the production
28:03activity because they will also do
28:05something with their raw material and
28:07will provide you again manufacturing
28:09will happen packaging and you are going
28:11to ship that raw material for the
28:13manufacturer at the next stage and in
28:15the end manufacturing unit is again
28:17replenishing the inventory keeping the
28:19updated stocks so that if any demand is
28:22coming from the market they can meet the
28:24demand so this is the complete
28:26procurement cycle so all
28:28four Cycles we have seen which are
28:30happening between all those stakeholders
28:33as a series of event we can see these
28:35the second is pushful view of supply
28:38chain P view of supply chain is when you
28:42are you know reacting to customer order
28:46so that means customer is visiting your
28:49site and then placing the order and then
28:51you are finally maybe preparing the
28:53order delivering the order in terms of
28:55services you can say that right but push
28:58view is when you are keep on producing
29:01the things and whenever customer is
29:03coming you will keep depleting the
29:05inventory right from the inventory you
29:07are meeting the order so in that way
29:09pull process you can say is a reactive
29:11process because you are starting uh you
29:15know producing your things once your
29:17customer order is arriving right and
29:19push is already you are keep on
29:21producing the things and then based on
29:25speculations uh forecasting that this is
29:27going to be the the demand and then let
29:29us manufacture this much inventory and
29:32then whenever the demand will be there
29:33we can consume that so this is Push Pull
29:35view of the supply chain it is important
29:38to set the pushpull boundary right see
29:41here what is there if you'll see this
29:43supply chain as one case we'll talk
29:45about two or three cases see customer
29:48order is arriving here and already what
29:50we have done we have prur the material
29:53we have manufactured the material and we
29:55have replenished the inventory with the
29:57retailer with the distributor all those
29:59three Cycles are done here right and
30:02whenever customer is coming to me fourth
30:05cycle that customer order cycle is
30:06filled here right that means this Push
30:09Pull boundary we are setting here so any
30:12example you can quote here means grocery
30:15items where you are go going to grocery
30:18retail shop and then they are having the
30:20inventory from that inventry they are
30:22fulfilling your order this is the best
30:25example grocery retail shop right let's
30:28take another example of uh uh you are
30:33building a
30:36house right so again if I'll say the
30:40procurement
30:44cycle will be here the second will be
30:48your uh manufacturing
30:52cycle replenishment
30:55cycle and second is C customer order
30:58cycle customer order cycle see when now
31:02this kind of supply chain we obviously
31:06we need to depend the complete supply
31:08chain will be pull supply
31:10chain in this case we were not having
31:14the complete pull or push supply chain
31:16up to customer order cycle we were
31:18implementing your pull process and
31:21beyond that first three Cycles were
31:23under pull process but here I'm talking
31:25about another example where the complete
31:27complete supply chain is your pull
31:30supply chain right because unless your
31:32customer is finalizing the site
31:36finalizing the contract with you you
31:38will not start your procurement what
31:40type of procurement is required in
31:42construction industry if you're building
31:44house construction for construction you
31:47need sand you need steel you need bricks
31:52you need
31:53buen you need electrical appliances you
31:56need maybe cement all those things are
31:59required you can see all those raw
32:01material you cannot purchase until your
32:05contract is not finalized your tender is
32:07not finalized right once it is done that
32:11means you recorded the order now you
32:12know the location you will start
32:14procuring all the raw material then you
32:17will start building the house
32:19manufacturing step by step Foundation
32:21balling Roofing all those you will be
32:24installing Furniture electrical
32:25appliances all those things and as long
32:27as as you are depleting the resources
32:30your raw material you will keep on
32:32replenishing that so this is a again
32:34example of pool supply chain where you
32:37will only react after receiving the
32:40customer order in between uh let's say
32:43if I can I set my boundary here or maybe
32:48here yes if we're talking about Dell
32:50Supply Chain let's talk about this is
32:52again very interesting what Del supply
32:54chain is doing customer is receive
32:57coming to your retail shop and then you
33:01are manufacturing you are starting
33:02manufacturing that means up manufactur
33:05up to this it is pull process but here
33:08it is push because they are having all
33:10the raw material components whatever
33:13capacity you want SSD how much capacity
33:16you want right which uh you know
33:18processor you want right so that all
33:21depending upon your requirements already
33:23I I have procured all the things are
33:25there in my inventory I will record your
33:28requirement for configuration for that
33:30system right your personal computer and
33:33then I'll start manufacturing assembling
33:35within 2 days 3 days it will be
33:37replenished with the retailer and you
33:39can pick your order this is another
33:41example where we can you know extend the
33:44pull supply chain up to uh your
33:46manufacturer so see we have different
33:49types of Supply chains you this setting
33:51up your push pull boundary is very very
33:53important right although pull supply
33:55chain is very very difficult to handle
33:57because because we are very uncertain
33:59unsure when the demand will come and
34:01then we are starting purchasing of the
34:03things so what we want we want to relax
34:06a little bit in that way and we can how
34:09we can you know include some of the
34:11stages under push strategy so that we
34:14can maintain some inventory as soon as
34:16the order is coming we can start you
34:18know processing the order right so
34:20that's why inventory is in th in those
34:23kind of cases very important to meet
34:26immediately your Demand right so I think
34:28this is uh pretty clear now how you can
34:32set the push pull boundary there is no
34:34unique you know approach where I'll say
34:36that this industry you should go for
34:38this structure only but depending upon
34:40your analysis up to what you can go for
34:42push industry and then you can go for
34:44pool industry right pull supply chain so
34:48we can conclude here that any
34:50uncertainty or challenges coming in the
34:53supply chain on your way score model is
34:56the very basic model if I talking about
34:58a product manufacturing right where we
35:00can include all those stages make Source
35:03deliver plan return right with all the
35:05stakeholders if planning is done at the
35:08Distribution Center that planning cannot
35:11be done in isolation with the other
35:13stakeholders you have to include your
35:16raw material suppliers your
35:17manufacturers your logistic Partners all
35:20those should be part of your that uh
35:23your planning process and then uh all
35:26you know players you can see different
35:28cycle of uh activities are happening
35:31between all those players but yes in
35:33that Push Pull view of supply chain it
35:36is important when you where you are
35:38setting your push boundary Push Pull
35:39boundary right so uh in that way but
35:43some Supply chains are kind of reactive
35:45Supply chains you cannot even start
35:47thinking of planning uh even right so
35:51once your you know the site is finalized
35:53your contract is finalized only then you
35:55can start planning how start start
35:57constructing the house right that is one
35:59example where you can see full complete
36:02P supply chain is there so uh these are
36:06the references you can go further for
36:08already I have mentioned books right so
36:11you can go through these references for
36:14further details so that's all thank you
36:16very much

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