Porter's Five Forces Model Of Supply Chain Analysis

SUPPLY CHAIN MODELLING APPROACHES

The two broad categories of decisions require different perspectives. The strategic decisions are, for the most part, ‘global’ or all encompassing i.e. they try to integrate the different aspects of supply chain. And the models which describes these decisions are huge and require considerable amount of data. And due to this broad scope and enormity of data, models provide approximate solutions.

• Network Design Method: This determines the location of production, sourcing facilities and stocking and the paths the products takes through them. These are the large scale methods and are generally used at the inception of supply chain.

• Brietman and Lucas provided a framework for comprehensive model of production-

This shows considerable potential for the models as strategic determinants in the future. Their nature forces these problems to be of very large scale and they are often difficult to solve to optimality.

PORTER’S FIVE FORCES MODEL

Michael Porter’s five forces model is used for creating a time efficient supply chain. The following activities are included in case of the business in question.

• Inbound Logistics: This is the primary activity in case of the supply chain of the clothing and textile business. The reason behind this is that it deals with the activities such as warehousing, material handling, vehicle scheduling etc. these activities helps in making the movements of material flow smoothly and also helps in reducing the time.

• Operations: This is the next primary activity in the Porter’s five forces model of supply chain. This part of the model includes the process of changing inputs i.e. raw material into the final product i.e. the finished goods. This comprises of packaging, maintenance and assembling

Their function is basically to sell the merchandise as it is purchased by the firm and they act as pure intermediaries. The firms in the other case are involved in the sale of retail clothing. Their task is to integrate the functions of manufacturer. The perspective has been changed for the distribution aspect. In the first type, designing is done by the supplier but in the other case, it is done by the customer. But in actual scenario, third party such as consultancy, freelancers, agencies etc. are also involved. They design the clothing collection on behalf of the retailers. The above two are not in proposition to each other but they are jointly present. Sourcing strategy is the functional strategy and it is below the corporate strategy. The possibilities that have been opened due to the geographical diversification act as an essential aspect when there is a question of which value chain should be produced within the national boundaries of the firm and which should be produced outside it. And the reason behind this is the direct foreign investment by the large groups. This is the guide for gaining competitive advantage. The expansion of this strategy requires an increase in the knowledge so that the process is carried out effectively as the activities are based on the relationship marketing applied to