Supply Chain >> Supplier & Production

We will see about supplier & production at the same time because both are very closely related.


As discussed earlier in the planning stages, one important factor is to get accurate information about market demand. We can find out what is desired by the market in several ways such as conducting market research, customer orders, customers feedback, information from other stakeholders, and so on.

Based on demand information, the companies / factories then make design products including raw materials needed to make these products as well as who will be the suppliers. At this stage, procurement contracts with supplier should be made. The procurement contract should mention all the terms and conditions required especially about material specification, delivery period & conditions and payment schedules. Would be better to get sample of the material from supplier prior of signing the procurement contract.

Then we go into the manufacturing process. At this stage production is based on demand information that has been made before. The manufacturing process should be made flexible and efficient to be able to respond if there are changes in the market. The manufacturing process consists of several important parts, e.g. product design, production scheduling, quality control and other supporting activities such as handling of products, packaging, storage and delivery plans.

In general, we can describe flow of the processes as below:

Planning: demand information -> Supplier: procurement contract -> Production: product design, production scheduling and supporting facilities.

I expect your comments / input for this writing and please also follow this blog if you like it. 😉

Categories: Supply Chain Management (eng) | Tags: , , , , , , | Leave a comment

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