What is Supply Chain?
The supply chain is a network of interconnected rings of manufacturers and distributors that generally supplies raw materials, converts them into intermediate goods and final products, distributes the finished products to customers. This network includes suppliers, logistics companies, manufacturers, distributors and retailers and provides material, product and information flow between these companies.
In a supply chain, the flow of information is generally in the direction of the customer, retailer, wholesaler, manufacturer and supplier, whereas the material flow is in the opposite direction. Today, not slow but continuous businesses, but in a competitive environment, the fastest way to deliver products to the customer wins.
Looking back, it is seen that in 1970 years, enterprises made material requirements planning and applied to physical distribution management. In 1980 years, enterprises started to plan production resources. In 1985, distribution resources planning came to the fore and fast response systems were established. The years with 1990 are now mentioned in Supply Chain Management and Enterprise Resource Planning (ERP) systems. The years with 2000 are the years of Super Supply Chain Management.
Roughly speaking, material management and physical distribution in 1980 years, logistics services in 1990 years, Supply Chain Management in 2000 years.
Today, supply chain is understood as a chain that includes the following activities: operational analysis and design tools, distribution strategies, operational improvements, computer systems, warehouse design, project management, operational management and computer simulations.
In Supply Chain Management, process management is essential and today the main supply chain processes are:
- Customer relations management
- Customer Service Management
- Demand Management
- Order Processing
- Manufacturing Flow Management
- Buy
- Product development
What are the Supply Chain Types?
In general, it is possible to classify supply chains as single-stage and multi-stage. In the single-stage supply chain, mainly the raw material acquisition and the material flow functions in the production and distribution processes are combined. Such supply chain also includes decision-making and information processing functions. Since the follow-up of debts and receivables is an important issue, the single-stage supply chains include the management of funds. In multistage supply chains, there are multiple processes. These supply chains are more likely to be used especially in enterprises that benefit from external sources.
In another aspect, supply chains are classified as traditional and modern. In traditional supply chains, supply of goods, compliance with plans and prevention of visible risks are important points. The feedback and logistics activities are not used here for sales development purposes. In modern supply chains, order fulfillment, sales loss prevention and customer satisfaction are prioritized. The purpose of this system is to use all feedback information for the whole system.
What are the objectives of Supply Chain Management?
The main objectives of the system are to add value to the enterprise, increase customer satisfaction, reduce cycle time, reduce inventory costs, reduce product errors and reduce operating costs.
To clarify these goals, we aim to:
- To provide uninterrupted flow of materials, services and information to carry out production operations on a regular basis
- Keep inventory costs and losses at a very low level
- Not compromising the quality of the product
- Finding reliable suppliers and ensuring continuity with these companies
- To standardize goods and services such as raw materials, auxiliary materials, parts and services received
- To obtain these goods and services at very low costs
- To increase the competitiveness and reputation of the enterprise
- Low management costs of the business
Considering what these targeted objectives bring to the business:
- Continuity of production is ensured by guaranteeing inputs
- Reducing the lead time enables the company to respond quickly to changes in the market
- Product quality is improved by meeting consumer demands correctly
- Using new technologies, the business is encouraged to innovate
- Total costs are reduced
- All kinds of information, materials and money flow of the enterprise are managed effectively
What is ISO 28000 Supply Chain Security Management System?
In 2007, the ISO 28000 standard was published by the International Standards Organization (ISO). This standard has been designed in a way that businesses from all sectors can use and to create lower inventory, higher productivity, more agile structuring, shorter lead times, higher profits and more customer dependency. This standard was published by the Turkish Standards Institute in 2013 with the title of specifications for TS ISO 28000 Supply chain security management systems.
The ISO 28000 Supply Chain Safety Management System standard provides businesses with significant advantages in the supply chain, which is vital to business continuity for many businesses. In some sectors, disruptions in the supply chain have an impact that will fundamentally shake the business. It is extremely important for business continuity that such enterprises have correctly identified the risks to the supply chain and effectively managed these risks. These risks should be foreseen for the continuity of the enterprises and adequate measures should be taken. The ISO 28000 standard is designed to manage supply chain security risks.
Supply Chain Security Management System is a series of interrelated resources and processes that start with the supply of raw materials in enterprises and include all stages of product and service to reach the end user through different transportation methods.
The concept of supply chain has a very broad meaning. Depending on the size of the businesses and the sectors in which they operate, different products may include different locations, such as production sites, warehouses, ports, containers or customs, complex operations and systems, different transport methods, different cargo types and zones with different security levels.
The ISO 28000 standard provides a framework for businesses on the supply chain that draws attention to critical security points in the supply chain. This framework includes, but is not limited to, production, production facilities, finance and information management.
