Various Models in SCM

There will always be greater differences in understanding any concept and implementing the concept in daily life. SCM may vary from business to business based on size, type of product, season of product, etc. Being said various SCM models are in practice for business sustainability. Few SCM models are –

1. Continuous Flow Model 

Companies that produce a limited variety of goods regularly are likely to opt for this model. Such a model can be possible for products or brands that have constant supply and high-demand chains. This can help in streamlining production and ensure a steady outcome.

2. Fast Chain Model

This model is beneficial for companies that emphasize quick turnover. The Fast chain model is specifically used for products with short lifecycles and follow the latest trends. Companies should understand the trend, think & design, and manufacture the product within a specified time ( or say before the trend loses its significance).

3. Efficient Chain Model

An efficient Chain is mostly useful in domains that have high competition. This model mainly focuses on extracting maximum output from machines, labor, and other assets to improve productivity and reduce costs. However, considering the rigidity of this plan, a long delay may cause even when there is a slight interruption. 

4. Flexible Model

Business Analysts say that the Flexible Model can be best for SCM. This model involves managing production in both high-demand and low-demand circumstances. This can be achieved by coordination between supply chains, keeping a low inventory level, adapting to changes, and keeping a good connection with customers.

5. Agile Model

On the basic level, Agile Model allows the business to be responsive and adapt to changes while maintaining momentum. This involves inventory management, prioritizing resources, and streamlining the manufacturing & distribution networks. With increased transparency of data, the Agile model help in detecting vulnerability and reducing risk.

Every product or service we use goes through a wide range of operations before it gets into our hands. This is a complete process of Supply Chain Management that allows the complete flow of goods failing to which might affect the groundwork involved in this chain of events may result in an unsatisfactory customer/end-user experience.

Being said that there goes a lot of effort and task management from gathering the raw materials to delivering the end product for business sustainability. Supply Chain Management deals with control and coordination of such chain of events to improve efficiency and meet end-user demands.

In this article, we are going to look at What is Supply Chain Management, the various models of SCM, and much more