Supply Network Design

What Is the Difference Between a Supply Chain and Supply Network?

A supply network is developed by connecting multiple supply chains. Consider the operational activities within your organisation, these will be classed as a “supply Chain” and will deliver value to your organisation.

Once you take into consideration your suppliers and consumers supply chain and how they interconnect with your own supply chain activity, you then have an overview of the ‘Supply network’, this will enable your organisation to take a holistic view of macro and micro factors and impacts that may ripple up or down the whole supply network and impact your own organisations supply chain.

We can then define the supply network as combination of multiple supply chains that network in a commercial environment and cross link organisational structures.

What Is the Difference Between a Supply Chain and Supply Network?

The complexity and length of the supply network can be determined by several key factors

  • The variations and complexity of products or services
  • The number of available suppliers
  • The types of raw materials required to produce the goods or service
  • The geographical distance from supply source to the buyers or consumer location
  • The methods and number of logistical routes

It is therefore critical for supply chain managers to understand and be able to identify as much of the supply network as possible to mitigate risk exposure within their own supply chain.

What Are the Challenges When Configuring a Supply Network?

Consumer demands can vary due to various influences, from promotional activity, seasonal demands; new entrants to the market and many more reasons besides, this can increase the challenges of managing the supply network activity. Supply chain managers will need to review waste activities, risks and innovative opportunities in order to maximise value from the supply chain.

However as the supply network evolves the following challenges can be experienced, how these activities are reviewed and developed will influence the transformation of the supply network.

  • How to evaluate the influence and functionality of new technologies in the process of supply chain configuration
  • How to support change management whilst increasing value in the supply network, when roles and responsibilities may change
  • How to evaluate decisions in a dynamic supply network and how the decision process will influence the supply network configuration

To find out more about this subject read the full knowledge papers:

Supply Network Design:

An icon of a document

Supply Network Design Papers: login to view

Login to view our members-only guides to Supply Network Design. If you would like to gain access to over 1000 members-only guides, webinars and papers join CIPS now. Login or Join CIPS

DOWNLOAD THE FULL GUIDE
Supply Network Design

 

For addition reading on this topic visit Supply Chain Management

Knowledge Topics:

Supply Chain Mgmt. Tools

Supply Chain Mgmt. Tools

See how global supply chains give procurement the opportunity to take advantage of the strengths and innovation of other countries

Listen Now
Global Supply Chains

Global Supply Chains

Global supply chains are networks that can span across multiple continents and countries for the purpose of sourcing and supplying goods and services

Find out more
The Future of Supply Chains

The Future of Supply Chains

Supply chains are constantly evolving, technology along with diversification of staff skill set is playing a key part in this development

Find out more
What is a Supply Chain

What is a Supply Chain

In its simplest form a supply chain is the activities required by the organisation to deliver goods or services to the consumer

Find out more
Managing the Supply Chain

Managing the Supply Chain

You can work in various areas of the supply chain, but the main goal when managing a supply chain is adding value

Find out more
Strategic SC Management

Strategic SC Management

When we discuss supply chain strategy we are discussing ‘value’ that can be derived from our supply chain

Find out more
Demand Driven Supply Chain

Demand Driven Supply Chain

A demand driven supply chain focuses on the demand from the consumer data and feeds this data through to the supply base so driving greater efficiency

Find out more
Technology in Supply Chain

Technology in Supply Chain

“The Future of Procurement and Supply Management” paper offers a reflection of what the profession may look like fifteen years from now

Find out more
Agile Supply

Agile Supply

See how organisations which are ‘agile’ react as quickly as is practicable to provide a cost effective response to customer demand

find out more
Lean Manufacturing

Lean Manufacturing

Organisations which are ‘agile’ react as quickly as is practicable to provide a cost effective response to customer demand

Find out more
Models

Models

Collaborative procurement is a method by which companies can engage with each other to enhance the effectiveness (SC/Sourcing/Procurement/Cost)

Find out more
Page Loading
Page Loading
Page Loading
Page Loading

Searching...

This may take up to 30 seconds