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Operation Management - Supply Chain Management

Essay by   •  April 14, 2019  •  Business Plan  •  1,090 Words (5 Pages)  •  11 Views

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Chapter 7

Supply Chain Management

Supply chain management is all about procurement, production and distribution of product. It follows a line from where raw materials are procured from best suppliers, production is made in factory and finally distributing the finished good to the customers who can purchase products from different business outlets. Supply chain management is one of the significant and dynamic aims of most companies in order to meet the demands of their customers.

The term supply chain refers to the set of activities involved in the flow and transformation of goods and the methodologies which are used to manage this flow of operation. SCM effectively integrates the key stakeholders such as suppliers, manufacturers, distributors and retailers in order to minimize cost as well as satisfy customer or service level requirements. Supply chain involves a two-way process between the suppliers and customers.

Demand management and inventory management are seen as the most important supply chain processes for nearly all industries. Similarly in case of industries which produce furniture, demand management and inventory management is a core aspect for businesses to create value with no loss in time. The supply chain in bamboo furniture basically includes three important people in overall flow. They are: Growers and traders of Bamboo, the processor who has work of checking and maintaining the quality of bamboo for next step and finally it is the assemblers at last who assemble the final products.

The type of bamboos required for the product manufacturing of Bambusa Pvt. Ltd is generally of two species which must have the features for bridge construction; house frames walls, reinforcement of concrete, ladders, scaffolding, tiles, and floor coverings. The selected species of bamboos are only available in eastern part of Nepal because of the suitable climate and soil feasible for growing of bamboos.

  1. Supply Chain of BAMBUSA Pvt. Ltd
  1.  The material flow part of supply chain

The supply chain model of Bambusa Pvt. Ltd can be illustrated with the diagram given below. This is a material flow of supply chain going through three processes.

[pic 1]

1.1.1        Growers and Traders

They are the one who have a sole ownership of the bamboos on the targeted location. They transfer us the needed number of bamboos when required. There are two species of bamboos selected for the production of Bambusa Products, namely they are Dendrocalamus Hookeri and Dendrocalamus Giganteous. In Nepalese term they are called as bhalu baas and dhungre baas respectively. These species are only available in eastern part so we decided to receive these bamboos from Illam, Jhapa and Terathum district due to its better climate and sand which is best for these species of bamboo.

1.1.2        Processor

The next part of the supply chain is the processor of bamboo. The traders first transfer the needed quantity of bamboos to our factory in Kathmandu, where the processor checks the shapes and structures of raw materials relevant for manufacturing. The few numbers of employee expert in selection will go through a procedure to prepare materials ready for assembling process.

The works involved in this stage are:

  • Identifying the best bamboos for product manufacturing based on size and shape. The selected bamboos must be stain free and scratch free
  • They refine the bamboos and treat not to get rot
  • Treatment is done by air compressor, varnish spray, and fabricated chemicals for skimming it water.

The processing part is done to ensure longevity of the bamboo for long lasting guarantee. It makes bamboos strong for next process.

1.1.3        Assembler  

Assembling is the last step for material supply chain. Here employees split the bamboos into different shapes and sizes as required in product. The processing part makes assembling stage easier to guarantee no tier and breaking of bamboos. The employee use hand-splitters to cut bamboos. After the work is done the bamboos are assembled for final product. The works may include the following:

  • Assembling materials into final product
  • Giving final color and designs
  • Polishing the product using sand papers and sand sealers

  1.  The product flow part of Supply Chain

The product flow part of supply chain starts when the assembling of final product is done. The final product is shifted to showroom of Bambusa Pvt. Ltd. Then the product will be provided to customers in three different ways:

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