There are 3 flows in a business; physical goods, finance and information. Now each if these flows have a supply chain. One of the problems encountered in supply chain management is to design the architecture of these three flows.
Imagine we both are into the same business of retailing eggs at UNN. I get my stock from a poultry inside the school compound while you get yours from someone in Ogige market who buys and sells wholesale. Now your supplier just has to load it in a vehicle which is just in front of her shop and it gets to you in front of Bello hostel. On the other hand, I would have to trek under the hot sun for like15 minutes to get to my own supplier and 15 minutes back to Bello. But my supplier is a producer. Who do you think is at the risk of running out of stock or take longer to receive orders??? Who is ahead in the competition?
Supply chain design encompasses the nodes in the flow of goods, finance and information in a business. It cuts out the various point of transfer of goods, information and finance in a business. A well-laid design is indispensable in the success of your business. It will,
1) Make it easier to identify problem source in your business.
2) Make it easy to estimate 'lead time'.
3) Make it easy to manage your business as you'd have what it looks like in your palm. Imagine knowing exactly how long it would take to get goods at your store! Imagine it's effect on your customers! Imagine where you'll stand in the competition!
Choose SCM today, lead the pack!