SUPPLY

CHAIN
 RAW MATERIALS

COSTUMER
INFORMATION

PRODUCER
PHYSICAL
DISTRIBUTION

RETAILER DISTRIBBUTOR

CASH
 BASIC
SUPPLY
CHAIN FOR
A PRODUCT
 INFORMATION FLOW

REVERSE PRODUCT FLOW

SUPPLIER PRODUCER CUSTOMER

PRIMARY PRIMARY
PRODUCT PRODUCT
FLOW FLOW

PRIMARY CASH FLOW

 BASIC
SUPPLY
CHAIN
SELLER PRODUCER CUSTOMER
RAW MATERIALS
ENERGY
SERVICES
COMPONENTS
COMPONENTS FROM SELLER
FURNISHED GOODS
SERVICE
RECEIVES THE FINISHED
PRODUCT
SELLER CUSTOMER
PRODUCER

RAW MATERIALS COMPONENTS

RECEIVES THE
ENERGY FROM SELLER
FINISHED
SERVICES FURNISHED
PRODUCT
COMPONENTS GOODS
SERVICE
 STRATEGIES

REACTIVE EFFICIENT
STABLE REACTIVE
 Execution
Efficiencies
Cost Performance
Fulfils demand from trade
partners
Focuses Efficiency and Cost
Management
 STRATEGIES

EFFICIENT
STABLE REACTIVE
REACTIVE

Execution Fulfils Focuses

Efficiencies demand from Efficiency and
trade partners
Cost Cost
Performance Management
FLOWS IN SUPPLY CHAINS

•INFORMATION FLOW
•REVERSE PRODUCT FLOW
•PRIMARY CASH FLOW
•PRIMARY PRODUCT FLOW
 INFORMATION FLOW

Invoices Receipts
Sales Orders
Literature Rules and
Specifications Regulations
REVERSE PRODUCT FLOW

Payments of Products
Supplies
PRIMARY PRODUCT FLOW

Materials Services
Components Finished
Suppliers Products
PRIMARY CASH FLOW

Returns for Recycling

Repairs Disposals
Replacements
FLOWS IN SUPPLY CHAINS
INFORMATION FLOW REVERSE PRODUCT FLOW

Invoices Receipts Payments of

Sales Orders Products
Literature Rules and Supplies
Specifications Regulations

PRIMARY PRODUCT FLOW PRIMARY CASH FLOW

Materials Services Returns for Recycling

Components Finished Repairs Disposals
Suppliers Products Replacements
SUPPLY CHAIN EXAMPLE

Whole Sale Distributors Producer

 Supply Chain in Services

Electricity Legal Real Software Federal

Estate Construction House Government
Provider Adviser
TWO TYPES OF SUPPLY CHAIN
MANAGEMENT

VERTICAL INTEGRATION

LATERAL or HORIZONTAL
INTEGRATION
VERTICAL SUPPLY CHAIN MANAGEMENT
HORIZONTAL SUPPLY CHAIN MANAGEMENT
HORIZONTAL INTEGRATION
BENEFITS OF VERTICAL INTEGRATION

Control No Dependency Synchronized

 BENEFITS OF LATERAL INTEGRATION

Economies of Focuses on
Know their
Scale and Particular Business
Market Well
Scope
Differences between
Vertical And Lateral
Integration
 Increase in Size
Diversity its Product or Service
Achieve Economies of Scale
Reduce Competition
Gain Access to new Costumers
of the Same Market

VERTICAL INTEGRATION
 LATERAL or HORIZONTAL
INTEGRATION

Strengthen its Supply Chain

Reduce its Production Costs
Capture Upstream or Downstream Profits
Access Downstream Distribution Channels
Differences between Vertical And Lateral Integration

Increase in Size Strengthen its Supply Chain

Diversity its Product or Service
Achieve Economies of Scale
Reduce Competition
Gain Access to new Costumers of
the Same Market
Reduce its Production Costs
Capture Upstream or
Downstream Profits
Access Downstream
Distribution Channels
Five basic components of Supply Chain
Management

Plan
Develop (Source)
Make
Deliver
Return
END