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A Supply Chain covers the entire system of producing and delivering a product or service, from the initial sourcing of raw materials to the final delivery to end consumers. In other words, the supply chain defines the entire production process, including all the adjunct activities involved at each step of the supply chain. It includes the information flow, natural resources transformed into useful materials, human resources, and any other components (i.e., packing materials, shipping containers, energy consumption) that are perceived as part of the final finished product or service.1).
A very important part of understanding is to conduct an external analysis of the Supply Chain, including documenting all the steps in the Supply chain, the flow of products, goods and services into the step and the processing accomplished in the step. The Supply Chain and the external analysis of the supply chain are essential for strategic planning for any participant in the Supply Chain.
Each step in a supply chain can a separate industry (i.e., producers of raw materials, transport companies, warehousing, and retail). In large corporations such as Walmart, the “separate industries” may actually be part of the same corporation. Although related, the Supply Chain and the Value Chain are different. For example, the Supply Chain might consider all the steps from raw material to final product while the Value Chain only covers the portion of the Supply Chain that a corporation has control over and/or what steps it feels it can add value to the final product.
In other words, the supply chain involves all parties in fulfilling a customer request and leading to customer satisfaction, a value chain is a set of interrelated activities a company uses to create a competitive advantage.2). Within the Supply chain, there is often a many-to-many relationship between parties along the change. I other words, one producer may service multiple distribution centers, one Distribution center may service multiple grocery store chains.
The following are some of the restrictions or benefits apply to Supply Chains in General3)4):
The following is an extremely simplified system that is meant to provide an overarching framework for using DIDOs to solve Supply Chain problems. It is not meant to be completely accurate but is provided for illustrative purposes. Others are encouraged to use this as a starting point for more complicated reality based scenarios.
The following is only a simplified list of the steps involved in providing Sal's strawberries from field to table. Its a long supply chain with each step adding risk the quality of the strawberries and/ or the safety of the strawberries.
When record keeping gets added to the Supply Chain, the complexity can be overwhelming. Fortunately, from a supply chain perspective, most the of the time the records end up being superfluous, but when there are problems with food safety the records are essential in tracking down the cause of the problem. In agriculture, as you move towards the source of the Supply Chain, many of the records are are non-digital.
In addition to the Health and Safety aspects of record keeping in the Supply Chain there are other important uses for the data. For example, improvements in efficiency that effect time to market, quality of the products delivered, or reducing wastage.
Although this scenario is about strawberries which may not be considered as a critical food resource, it does represent many agricultural issues for commodities such as grain, meat or dairy. It can also be reflective of non-
The following activities are based on the assumption that a Supply Chain system is implemented using a DIDO. The other assumption is that the Supply Chain records belong to the participant in the Supply Chain and not an outside Value Chain participant. Although each participant, controls and is ultimately responsible for their records, it does not mean that the information can't be federated to all the participants in the Supply Chain.
It is only a simplified list of the steps involved in providing fresh, high quality strawberries from the field to the table so to speak.
* theory
The Following provides a detailed discussion of some of the issues associated with a Theoretical Simplified System Using DIDO scenario.
Discussion of Issues