OCTOBER 19-20, 2012 - YMCA University of Science & Technology

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
efficiency in each of these drivers allows a supply chain to “increase throughput while simultaneously reducing
inventory and operating expense.”
PRODUCTION
INVENTORY LOCATION INFORMATION
TRANSPORTATION
Figure 1. Supply Chain Drivers
Supply Chain Elements:
Simplest form of supply chain is consisting of a company and the suppliers and customers of particular
company. This is the basic elements that form a simple supply chain. Due to complexity of the business
processes, the Supply chains were extended by adding three additional types of elements. First there is the
supplier’s supplier at the beginning of an extended supply chain. Then there is the customer’s customer or final
customer at the end of an extended supply chain. Finally there is a whole category of companies who are service
providers to other companies in the supply chain. These are companies who supply services in logistics, finance,
marketing, and information technology. In any given supply chain there is some combination of companies who
perform different functions. There are companies that are producers, distributors or wholesalers, retailers, and
companies or individuals who are the customers, the final consumers of a product. Supporting these companies
there will be other companies that are service providers that provide a range of needed services.
Simple Supply Chain Structure
Supplier Company Customer
Extended Supply Chain
Suppliers
Supplier
Supplier Company Customer
Final
Customer
Service Providers
in areas Such as :
• Logistics
• Finance
• Market Research
• Product Design
• Information Technology
Service
Provider
Figure 2. Supply Chain Structure
Role of Supplier:
Suppliers play important role in the quality management and it is the suppliers who can help a company to
achieve excellence. Company should identify what are their internal and external suppliers What are their true
needs and expectations How they communicate their needs and expectations to suppliers Do their suppliers
have the capability to measure and meet these needs and expectations This helps the companies to improve their
own quality by improving their supplier’s product and service quality which is possible only through the
integrating of the suppliers in quality system. Supplier has to play following different role:
• Improving transportation facilities
• Proper stocking and transportation of materials Improve delivery performance and time based agreements
• Fulfilling demand/requirements
• Inventory Management
• Funds Management
• Efficient supply of materials
• Reducing information fluctuations using IT tools
• Proper communication
• Continuous Monitoring
• Market know-how’s
Supplier Quality Assurance System:
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