Supply chain management is an essential part of running a successful business. It deals with all the logistics involved, from producing the products to selling them in the commercial market. A smooth supply chain ensures that the product is built efficiently and there aren’t any hurdles, from assembling the raw materials to delivering the product to the vendor on time.
For the entire process to work together seamlessly, the business must first figure out the supply chain model that will work best for them. 6 supply chain models are commonly used in the supply chain management business. Therefore, it is essential for anyone looking into supply chain management jobs to know all about these supply chain models.
In this article, we will go over the six supply chain models, but if you want to study them in-depth, you must join the PGP in digital supply chain management.
6 types of Supply Chain Management models
Depending on your business model, you will require a supply chain model accordingly. For example, if you are managing the supply chain on a global scale, you cannot use the model commonly used on a small scale. Businesses that attempt that will end up doing more harm than good to the entire brand.
So first, understand all the different models in supply chain management and then decide which would be the ideal one for your business. Here are the 6 supply chain models:
1. The continuous model
A lot of businesses that operate on stability choose the continuous model. This is one of the traditional models on the list, due to which many new businesses mistake adopting it in their supply chain management jobs. The problem occurs when there is a lack of stability in the supply chain process from either the manufacturer’s or the buyers’ end.
The continuous model is best for well-established businesses that have a constant flow of buyers in the market while also having the resources to meet the buyers’ demands on time.
2. The fast model
Unlike the continuous logistics and supply chain management model, the fast model is a recent addition to the bunch. This is a model ideal for businesses with a short product life cycle. Brands with seasonal products or products on a limited-time basis can use this model for increased efficiency.
The fast model ensures that the product is built within the given time frame and reaches the market before the trend or season is over. This is the one model that no business should miss out on. Finding opportunities during the holiday season or a big event like a hugely anticipated movie release is how you can use this model to boost sales.
3. The efficient model
Companies with their goal of maximizing efficiency must use the efficient model. This is the one model that requires a comprehensive understanding of the concept, and thus getting a supply chain management degree will be the most beneficial course of action. The efficient supply chain model requires the organization to analyze past buying patterns and make an educated guess about the necessary machinery, equipment, and raw material.
The efficient model in the supply chain needs the professional to have a lot of knowledge and expertise, as a wrong prediction can cause a huge ripple effect in the supply chain.
4. The custom-configured model
Like the continuous supply chain model, the custom-configured model also requires end-to-end stability. The ‘custom’ part of this model applies at various stages where there is customization in the manufacturing process. Due to customization being a considerable part of this model, the method sometimes becomes Agile.
The custom-configured model is ideal for businesses prototyping products and figuring out the best way to market them to the right audience. When this model is covered in the supply chain management certification, it is advised to work with this during production in small batches.
5. The agile model
Virtual integration, process alignment, network base, and market sensitivity make the perfect agile digital supply chain model.
Virtual integration is when the business tracks the real-time market demands and is ready to make the required changes in the product. These changes are made by dividing the responsibilities among team members. And when everyone syncs their tasks to work the supply chain as a piece, an automatic network base is formed with everyone making equal contributions to the end product. And finally, market sensitivity is required to handle any sudden changes in the market.
6. The flexible model
Depending on the demand in the market, the production and distribution process should maintain flexibility. The flexible model ensures that all the high demands are met within time, and at the same time, when there is a period of low demand, even that is handled in the most resourceful way.
The flexibility in the flexible supply chain management model starts right at the beginning with flexible planning. The plan should be created by understanding the market, analyzing previous years’ data, and analyzing the patterns seen among the competitors.
What is the Supply Chain Management salary?
According to Salary.com, the average salary of a supply chain manager is $118,818 per year. The supply chain management salary can go up to $135,395 if the individual has proper logistics and supply chain management training.
In conclusion
Businesses that deal with getting products out in the commercial market must have a good team, with everyone having a supply chain management degree. When individuals are well-trained in the process, they can choose the suitable supply chain model for the business.
There are 6 commonly known models of the supply chain:
- The continuous supply chain model
- The fast supply chain model
- The efficient supply chain model
- The custom-configured supply chain model
- The agile supply chain model
- The flexible supply chain model
Anyone who masters all these models can land any job among all the supply chain management jobs and earn a higher salary than their peers.
