Supply Chain Decision Level:

Strategic Planning
Every effective supply chain strategy begins with solid long-term decision-making.
The strategy level lays the groundwork for the entire supply chain process, from
beginning to end, and is an essential part of supply chain management. Strategy
level supply chain decisions are usually the first step of developing a good process.
Issues addressed at this level include:
 Choosing the site and purpose of business facilities
 Creating a network of reliable suppliers, transporters, and logistics handlers
 Long-term improvements and innovations to meet client demands
 Inventory and product management throughout its life cycle
 IT programs and systems to make the process more effective
Tactical Management

Businesses make short-term decisions involving the supply chain at the tactical
level. At the strategy level, general planning begins, but processes are actually
defined at the tactical level. Tactical decisions play a big role in controlling costs
and minimizing risks. At this level, the focus is on customer demands and
achieving the best end value.

Common concerns include:

 Procurement contracts for necessary materials and services

 Production schedules and guidelines to meet quality, safety, and quantity
standards
 Transportation and warehousing solutions, including outsourcing and third-party
options
 Inventory logistics, including storage and end-product distribution
 Adopting best practices in comparison to competitors
The Operational Level
The operational level of supply chain management is the most obvious. These are
the day-to-day processes, decision-making, and planning that take place to keep the
supply chain active. The mistake that many companies make is to jump straight
into operational management without focusing on the strategy and tactical levels.
Effective operational level processes are the result of strong strategical and tactical
planning.
Some aspects of operational level management are:
 Daily and weekly forecasting to figure out and satisfy demand
 Production operations, including scheduling and detailed management of
goods-in-process
 Monitoring logistics activity for contract and order fulfillment
 Settling damages or losses with suppliers, vendors, and clients
 Managing incoming and outgoing materials and products, as well as on-hand
inventories
The most effective supply chain strategies are the result of a holistic management
approach. When all 3 levels of supply chain management are given proper
attention, every member of the supply chain benefits.
Supply Chain Flows:
There are three different types of flow in supply chain management −
 Product flow
 Information/Data flow
 Finances flow
Product Flow
Material flow includes a smooth flow of an item from the producer to the
consumer. This is possible through various warehouses among distributors, dealers
and retailers.
The main challenge we face is in ensuring that the material flows as inventory
quickly without any stoppage through different points in the chain. The quicker it
moves, the better it is for the enterprise, as it minimizes the cash cycle.
The item can also flow from the consumer to the producer for any kind of repairs,
or exchange for an end of life material. Finally, completed goods flow from
customers to their consumers through different agencies. A process known as 3PL
is in place in this scenario. There is also an internal flow within the customer
company.
Information Flow
Information/data flow comprises the request for quotation, purchase order, monthly
schedules, engineering change requests, quality complaints and reports on supplier
performance from customer side to the supplier.
From the producer’s side to the consumer’s side, the information flow consists of
the presentation of the company, offer, confirmation of purchase order, reports on
action taken on deviation, dispatch details, report on inventory, invoices, etc.
For a successful supply chain, regular interaction is necessary between the
producer and the consumer. In many instances, we can see that other partners like
distributors, dealers, retailers, logistic service providers participate in the
information network.
In addition to this, several departments at the producer and consumer side are also
a part of the information loop. Here we need to note that the internal information
flow with the customer for in-house manufacture is different.
Finances Flow
On the basis of the invoice raised by the producer, the clients examine the order for
correctness. If the claims are correct, money flows from the clients to the
respective producer. Flow of money is also observed from the producer side to the
clients in the form of debit notes.
In short, to achieve an efficient and effective supply chain, it is essential to manage
all three flows properly with minimal efforts. It is a difficult task for a supply chain
manager to identify which information is critical for decision-making. Therefore,
he or she would prefer to have the visibility of all flows on the click of a button.
Challenges In Supply Chain Management:
Logistics refers to the movement, storage, and flow of goods, services and
information inside and outside the organization. The main focus of supply chain is
a competitive advantage, while the main focus of logistics is meeting customer
requirements. ...Logistics is an activity within the supply chain.
The supply chain is the entire process, while procurement is a part of
it. Procurement is defined as the process of getting the products and/or services
your company needs to fulfill its business model
There are four customary stages in a product's life cycle: the introductory phase,
the growth phase, the maturity phase and the decline phase. Each phase is
markedly different and often requires different value chains. Supply managers need
to craft supply strategies that reflect the unique needs of each phase.
Assets refer to fixed assets, which are the long-term pieces of property that
businesses use to create their profits. Assets are not sold quickly like inventory—
they are invested in, managed, and eventually phased out in favor of newer
investments.
Examples of fixed assets include computers, vehicles, heavy warehouse machinery
like forklifts and robots, and tools like smartphones, barcode scanners, and
wearables such as smart watches.

The strategic supply chain processes that management has to decide upon will
cover the breadth of the supply chain. These include product development,
customers, manufacturing, vendors, and logistics.

Supply chain planning (SCP) is the forward-looking process of coordinating assets

to optimize the delivery of goods, services and information from supplier to
customer, balancing supply and demand. ... Inventory planning.
Production/factory planning and scheduling.