A product driven approach to manufacturing supply chain selection

Abstract

A supply chain consists of suppliers, manufacturers, distributors, and customers, all linked together with a forward flow of material and backward flow of information. It encompasses all activities associated with the flow and transformation of goods from raw material extraction through end use. Supply chain management is the integration of critical aspects of strategy formulation, marketing, operations, and distribution. A critical aspect of supply chain management is the selection of an appropriate type of supply chain to achieve optimal performance. This paper classifies manufacturing supply chains into three types; namely, lean, agile, and hybrid. The characteristics of these supply chains are presented. It is proposed that the selection of an appropriate type of supply chain should be driven by the characteristic of product an organization is manufacturing. A model is then developed and implemented to assist organizations in supply chain selection. © 2002, MCB UP Limited