Merit for building a Supply Chain flow charts : it’s can forecast the overall network of organizations that are involved through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer, the process being analyzed in order to standardize or find areas of improvement. The primary information in the flow chart is each step in the process and the amount of time consumed in each step. Once the Supply Chain flow charts are complete, the process can be analyze by the process time and value added activities.
Start with the longest process time. Begin by asking questions why it takes so long and where in the process can steps be taken out in order to decrease this time. Do this with each step in the process. While analyzing the process time manager's would most likely be concerned with value added activities in order to decrease the process times. Be sure to look for duplicate transactions, unnecessary steps, and anything adding little value. In pictures are the example illustrates how to draw a Supply Chain flow chart based on an observed process. It can also be used as an additional exercise.
1. This flow chart shows a typical manufacturing supply chain work flow detailing which areas of the business are involved.
2. The sales department identifies a need for a product. The sales department tell the marketing department about their idea and provide any supporting information / data.
3. The marketing department use business analysts to support the project and to complete the research.
4. Data and supporting evidence is passed back to the marketing department for completion of a business plan.
5. A fully detailed business plan is forwarded to the Business Unit Manager / Directors.
6. This unit comprises of the senior business directors or managers who make a decision on the project.
7. After approval the plan is passed back to the analysts to prepare and implement the manufacturing process.
8. Details of raw materials and components passed to purchasing.
9. Purchasing work with logistics and transport to plan the purchase and delivery of the materials to the manufacturing plant.
10.Suppliers receive orders for product and then dispatch on agreed transport on agreed dates.
11. Carriers approved by the business transport the raw materials and components to the manufacturing site.
12. Products are received into the warehouse and then moved to manufacturing.
13. Finished products are moved from manufacturing to the finished goods warehouse which might be situated locally or in a remote location.
14. Finished goods are put into inventory awaiting orders. The company computer system is updated. Product is now available to sales.
15. Customers place orders through customer services.
16. Customer Services take orders and input them to the company computer system.
17. The central computer system maintains transaction records and provided visibility of product for sale.
18. An order is completed and a pick list sent to the warehouse.
19. A copy of the order is sent to the export department for completion of export documentation.
20. Export department manages the final dispatch of the product and produces any export documents.
21. Documents are sent to the warehouse to meet up with the finished order.
22. The order is dispatched by the warehouse.
23. The transport company collects the consignment and delivers it to the customer based upon the INCO terms of carriage.
24. As stock has now been used the computer system generates a request for new stock.
25. The re-order process generates a request to the purchasing department to place new orders with the suppliers.
Good design of Supply Chain flow charts is at the heart of an effective supply chain solution. Solutions must design team offers a wide portfolio of expertise and services, from Logistics network strategy, transport design, warehouse design and simulation, through to operational improvement and inventory analysis.