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Foreign Trade

Understanding Supply Chain Management: Different Perspectives & Examples

23 January 2023
A man is walking in a warehouse, his face illuminated by the bright light coming from the windows. He has a serious expression on his face as he strides forward, his hands tucked in his pockets. Behind him, a woman is smiling brightly for the camera, her dark hair pulled back in a tight bun. To the left of the man is a screenshot of a company's website, with various information displayed. In the middle of the image, a white letter 'O' stands out on a black background. Further down, a road is visible with a white line running along its length. At the top of the image, a black background is visible with white text on it. To the right of the man, a white letter 'O' stands out on a black background. Finally, in the top left corner, another white letter stands out on a dark background. With all the details present, the image tells the story of a man walking in a warehouse, with other information nearby.
PerspectiveDefinitionExample
Traditional ViewAnalyzes supply chain from linear perspective, focusing on various stages from supplier to customer.Identifying cost reduction opportunities in each supply chain stage.
Demand-Driven ViewTakes into account customer's needs and expectations, looking for cost-effective ways to meet these requirements.Satisfy customer demand with cost-effective strategies like just-in-time inventory.
Customer-Centric ViewA view that focuses on the customer's experience and looks for ways to improve it.Improving delivery times for better customer experience.
Sustainability ViewConsiders the environmental and social impact of the supply chain.Implementing strategies to reduce carbon emissions in supply chain processes.
Benefits of Multi-Perspective AnalysisUsing different perspectives to identify opportunities for improvement.Uncover strategies to improve customer satisfaction, cost reduction, and sustainability.
Traditional View BenefitHelps understand overall cost of supply chain and spots areas for improvement.Reducing costs by identifying and rectifying inefficiencies in each stage of the supply chain.
Demand-Driven View BenefitIdentifies opportunities to increase customer satisfaction and enhance supply chain efficiency.Aligning inventory management strategies with customer shopping patterns to minimize stockouts and overstock situations.
Customer-Centric View BenefitIdentifies ways to increase customer loyalty and overall customer experience.Improving communication with customers about order status and delivery times.
Sustainability View BenefitIdentifies ways to reduce environmental impact and enhance social impact of supply chain.Sourcing materials from suppliers who use sustainable practices.
ConclusionTakes into account all perspectives to optimize supply chain operations.Creating a more efficient, customer-focused, and eco-friendly supply chain.

This article discusses the different perspectives on supply chain management, including the traditional supply chain view, the demand-driven view, the customer-centric view, and the sustainability view.

Each of these views provides a unique perspective on the supply chain and can help supply chain managers identify areas for improvement and opportunities to increase customer satisfaction.

  • Introduction

  • Different Perspectives on Supply Chain Management

  • Examples of Different Perspectives

  • Benefits of Analyzing Supply Chains from Different Perspectives

  • Conclusion

Introduction: Supply chain management is a complex undertaking that requires a holistic view of the entire process. It involves coordinating multiple elements, including suppliers, manufacturers, distributors, and customers. This complexity can be difficult to manage, but it can be made easier when supply chain managers consider different perspectives. By looking at the supply chain from different angles, managers can gain a better understanding of how their supply chain is actually working and can identify areas where improvements can be made.

Different Perspectives on Supply Chain Management

There are several different ways to analyze a supply chain. These perspectives include the traditional supply chain view, the demand-driven view, the customer-centric view, and the sustainability view. Each of these views provides a unique perspective on the supply chain and can help supply chain managers identify opportunities for improvement.

The traditional supply chain view looks at the supply chain from a linear perspective. This view focuses on the various stages of the supply chain, from the supplier to the customer. It considers the costs, resources, and processes associated with each stage of the supply chain. This view is useful for understanding the overall cost of the supply chain and for identifying areas where improvements can be made.

The demand-driven view looks at the supply chain from the customer demand perspective. This view takes into account the customer’s needs and expectations and looks for ways to meet those needs in a cost-effective manner. This view is useful for identifying opportunities to increase customer satisfaction and improve the supply chain's efficiency.

The customer-centric view looks at the supply chain from the customer's perspective. This view takes into account the customer’s experience and looks for ways to improve the customer’s experience. This view is useful for identifying opportunities to increase customer loyalty and for improving the customer’s overall experience with the supply chain.

The sustainability view looks at the supply chain from environmental and social responsibility perspectives. This view takes into account the impact of the supply chain on the environment and on society. This view is useful for identifying opportunities to reduce the environmental impact of the supply chain and for improving the social impact of the supply chain.

Examples of Different Perspectives

To illustrate how different perspectives can be used to analyze a supply chain, consider the following example. A company is looking to reduce the cost of its supply chain. From a traditional supply chain perspective, the company could look at the cost of each stage of the supply chain and identify areas where costs could be reduced.

From a demand-driven perspective, the company could look at customer demand and identify ways to meet customer needs cost-effectively. From a customer-centric perspective, the company could look at the customer experience and identify ways to improve the customer’s experience.

Finally, from a sustainability perspective, the company could look at the environmental and social impact of the supply chain and identify ways to reduce the environmental impact and improve the social impact.

Benefits of Analyzing Supply Chains from Different Perspectives

Analyzing a supply chain from different perspectives can provide several benefits. First, it can help supply chain managers better understand the supply chain and identify opportunities for improvement. Second, it can help supply chain managers develop strategies tailored to their customers' needs. Finally, it can help supply chain managers develop strategies that are more sustainable and that have a positive impact on the environment and society.

Conclusion: Analyzing a supply chain from different perspectives can provide several benefits. By looking at the supply chain from different angles, supply chain managers can better understand how their supply chain works and identify areas where improvements can be made.

This can help them develop strategies that are tailored to the needs of their customers and that are more sustainable. By taking multiple perspectives into account, supply chain managers can ensure that their supply chains are functioning optimally and taking into account the needs of their customers, the environment, and society.

Supply Chain Management is a complex process that requires different perspectives to be successful.

IIENSTITU
Traditional View, Analyzes supply chain from linear perspective, focusing on various stages from supplier to customer, Identifying cost reduction opportunities in each supply chain stage, Demand-Driven View, Takes into account customer's needs and expectations, looking for cost-effective ways to meet these requirements, Satisfy customer demand with cost-effective strategies like just-in-time inventory, Customer-Centric View, A view that focuses on the customer's experience and looks for ways to improve it, Improving delivery times for better customer experience, Sustainability View, Considers the environmental and social impact of the supply chain, Implementing strategies to reduce carbon emissions in supply chain processes, Benefits of Multi-Perspective Analysis, Using different perspectives to identify opportunities for improvement, Uncover strategies to improve customer satisfaction, cost reduction, and sustainability, Traditional View Benefit, Helps understand overall cost of supply chain and spots areas for improvement, Reducing costs by identifying and rectifying inefficiencies in each stage of the supply chain, Demand-Driven View Benefit, Identifies opportunities to increase customer satisfaction and enhance supply chain efficiency, Aligning inventory management strategies with customer shopping patterns to minimize stockouts and overstock situations, Customer-Centric View Benefit, Identifies ways to increase customer loyalty and overall customer experience, Improving communication with customers about order status and delivery times, Sustainability View Benefit, Identifies ways to reduce environmental impact and enhance social impact of supply chain, Sourcing materials from suppliers who use sustainable practices, Conclusion, Takes into account all perspectives to optimize supply chain operations, Creating a more efficient, customer-focused, and eco-friendly supply chain
Supply Chain Management traditional supply chain view demand-driven view customer-centric view sustainability view cost resources processes customer demand customer experience environmental social responsibility cost reduction customer needs customer satisfaction customer loyalty environmental impact social impact strategies customer needs sustainability
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Amara Weiss
Institute Secretary, Author

I am Amara Weiss and for many years I have worked in the field of education, specifically in the area of technology. I firmly believe that technology is a powerful tool that can help educators achieve their goals and improve student outcomes. That is why I currently work with IIENSTITU, an organization that supports more than 2 million students worldwide. In my role, I strive to contribute to its global growth and help educators make the most of available technologies.

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