ABSTRACT

In Chapter 2, we discussed the need for a total supply chain management approach and introduced the concepts of building blocks. The importance of each building block is explained in this chapter. No block stands alone, each is a component of the whole. In combination the blocks show activities, stages and processes of the extended supply chain. The sequence of processes creates a flow between different stages to fulfil a customer’s need for a product or a service. The processes of making things happen within a supply chain can be viewed as a sequence of progressive cycles (e.g. planning cycle) or the nature of response to a customer order (e.g. push or pull). There are debates between supporters of make to order policy and make to forecast policy as if one policy is better than the other regardless of customers, demand patterns, products or organizations. Therefore, we aim to explain in this chapter:

• What are the process views of a supply chain? • What are the building blocks of a supply chain? • Are all the building blocks suited to all organizations?