SUPPLY CHAIN MANAGEMENT (Basic Concepts)

FLOW OF GOODS/MERCHANDISE (Physical flow)

Reverse Logistic (Returns, Recall, Recycle)

Regional
COMPETITIVE ADVANTAGE LOGISTICS = Handle Goods across Supply Chain. WAREHOUSE
Patagonia, Zara, Benetton, Warehouses + Inventory + Transportation
H&M, Uniqlo
INVENTORY
Raw materials
DISTRIBUTION
(Cotton, etc.)
RESELLER/
RETAILER
SOURCING
Procurement Order SOURCING
Factory Order Distribution Replenishment
Re-assortment Store: point of
Order consumption
FARMING MANUFACTURER MANUFACTURER Re-assortment
CULTIVATION Textile Apparel Order
Fulfillment Order
National
TRANSPORTATION WAREHOUSE
▪ Ship End customer or Final
▪ Train customer
▪ Plane Disintermediation VALUE for customer
▪ Trucks ▪ The right product
▪ Right price
▪ Right place
▪ Right time

Country C1 Country C2 Country C3 Country C4 Region R1, R2. etc.

SUPPLY side DEMAND side

FLOW OF INFORMATION (SCM is Customer Centric)