Discover Supply Chain

Feb 1, 2025 | Supply Chain

‘What do you do?’ is a terrifying question for most supply chain practitioners. I have been making the attempt for years and it is still a challenge to provide a concise and meaningful answer.

Even after Covid that put supply chain at the center of stage like a demon causing all sorts of pain and havoc, people just don’t get it. I have seen the label of supply chain being “common-sense”, “back-office function”, “same as logistics”. I don’t blame them. Supply chains are complex, and they evolve all the time.

One of my first infographics that made waves on LinkedIn was the “7 Wonders of the Supply Chain World”. Let’s break them down!

  1. Demand Planning

This is where the magic begins. Demand planning involves predicting future demand for products. It answers questions like What products? How many? For which customer? Where to sell? When? Through which distribution networks?

Imagine a new beauty product going viral after an influencer praises it. Without effective demand planning, companies would struggle to produce and ship enough of the product to meet the sudden spike in demand. Good demand planning anticipates market fluctuations and prepares for them.

  1. Supply Planning

Once we have the demand prediction, the next step is supply planning. This means figuring out how best to fulfill the demand plan. It involves balancing capacity, inventory, and resources to ensure that products are produced and delivered on time.

Consider a company producing chocolates (yes, I love candy). They need to ensure that raw materials and packaging are available, production capacity is scheduled, and factories are ready to meet the expected demand, all while managing supplier constraints.

  1. Sales & Operations Planning (S&OP)

S&OP is where the real synchronization happens and where my heart is. This strategic process integrates demand, supply, and financial planning into one game plan. It links strategic plans to operational ones and helps determine the best product mix and portfolio to maximize profitability and cash flow.

I have a great free infographic bundle about S&OP that you can download here.

  1. Operations

These are all the activities related to producing and delivering products, including manufacturing, assembly, and services. Here is where a transformation takes place.

Earlier in my career, I worked for Cummins Inc, a Fortune 500 company that produces engines. I had the opportunity to experience firsthand how the Operations team put all the so many pieces together to make it happen.

  1. Procurement

Procurement is the area where I started my career in the amazing world of supply chain. It is about sourcing raw materials, negotiating contracts, and managing supplier relationships. It’s not just “buying stuff”. It’s about finding the right materials at the lowest cost while keeping high quality and minimizing risk.

  1. Warehousing (Part of Logistics)

Warehousing is where products are stored before they are shipped to customers. This involves receiving, putaway, picking, packing, and shipping. Efficient warehousing ensures that products are ready for dispatch when orders come in.

Think aboutAmazon. This e-commerce giant relies heavily on well-organized warehouses to process thousands of orders daily, ensuring that products are picked, packed, and shipped to customers as quickly as possible.

  1. Transportation (Part of Logistics)

Transportation is movement. Precisely, it involves moving products from one location to another. It’s critical for ensuring timely deliveries to customers while minimizing transportation costs. It may sound simple but Transportation is full of challenges.

These are the 7 wonders of supply chain in my infographics but in reality, there are more wonders…

  1. Quality Management

Quality Management is critical to ensuring that the products created meet customer expectations. This involves testing, inspection, and continuous improvement efforts.

Let’s take the example ofa pharmaceutical company. It needs to rigorously test every batch of medication to ensure safety and efficacy, complying with regulatory standards.

  1. Customer Service

Customer service ties everything together. Great customer service makes customers receive what they ordered, when they expect it, and that any issues are resolved quickly.

For example, a company selling electronics must have a robust customer service team to handle issues like returns, repairs, and technical support, ensuring customer satisfaction even after the product is delivered.

Which supply chain wonder is the most fascinating for you?

Are You Ready For A Supply Chain Transformation?

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