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BTEC level 3 Unit 35 P1
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BTEC level 3 Unit 35 P1
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By: ikrammohamed • 6 year ago
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By: brennankooistra • 7 year ago
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In this P I’m going to explain what supply chain management exactly is and I’m going to explain theupstream and downstream processes within a supply chain. Another thing I will do in this P is
explaining what is meant with variation within the supply
chain. I will explain these subjects using the things I
learned and I will be using different examples.
Unit 35 is about supply chain management. Supply chain
management is the way of materials, information and
finances move between organisations. In supply chain
management it’s very important that supply and demand
match. This means that the production of products is
based on the demand of those products. so let’s say your products is sold out every time the demand
of your product is high so you need to produce more of your product so you will be able to always
sell the product.
Within the supply chain you have two different kinds of streams, the upstream supply chain process
and the downstream supply chain process. The upstream supply chain process is also known as the
buy side, this is because the manufactor buys all the materials to make the product. Within the
upstream supply chain process also falls making the product out of raw materials. The other side of
the supply chain is the downstream supply chain process this side is also known as the sell side. This
side makes sure the end products will get to the end user.
The supply chain is different for every company, that’s because let’s say a company that produces
French fries needs other things than let’s say Apple. For example the supply chain of the French fries
company first needs to go to a farm to collect the potato’s then they need to be transported to the
factor, in the factory they need to cut the potatoes when cut the
potatoes need to be packed and when finally packed the French fries
go to the supermarket. For Apple it’s of course totally different
because they don’t work with raw materials. Therefor the fries maker
falls into the upstream supply chain process because he uses raw
materials for his products. Apple also falls into the upstream supply
chain process because Apple buys the materials needed for their
IPhones.
In a supply chain all the participants should be connected with each other this is done with
technological software, computer hardware and the internet. Systems and databases are connected
because it will make sure that the flow of information is effective and efficient. This is called network
configuration.
There is also a lot of variation within the supply chain with variation is meant that sometimes
participants will change within a supply chain. Another word for the participants in a supply chain are
called supply chain stakeholders. Supply chain stakeholders are divided into two groups: the direct
and indirect supply chain stakeholders. The responsibilities of a direct stakeholders is to make sure
that the production of products go well and that the products are used. The indirect supply chain
stakeholders are there to make sure that the whole supply chain function at a whole.
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