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Understanding the Cycle View of a Supply Chain: What Is It and Why Is It Important?

Understanding the Cycle View of a Supply Chain: What Is It and Why Is It Important?
### Simplified Overview of the Cycle View of a Supply Chain

#### Abstract
The supply chain is a complex network that involves manufacturers, suppliers, transporters, retailers, warehouses, and even customers. A typical supply chain consists of various stages, such as customers, retailers, distributors, manufacturers, and component suppliers. The **Cycle View of a Supply Chain** is a framework that helps define the roles of each participant, enabling better operational decisions. Its primary goal is to transform customer visits into customer orders. Distribution channels play a vital role in ensuring products reach the end customer efficiently. A supplier, as part of this cycle, provides goods or services to other entities within the supply chain.

#### Introduction
The supply chain is divided into a series of cycles, each occurring at the interface between two successive stages. Each cycle consists of six sub-processes:
1. The supplier markets a product.
2. The buyer places an order.
3. The supplier receives the order.
4. The supplier delivers the order.
5. The buyer receives the supply.
6. The buyer returns any reverse flows to the supplier or a third party.

This article explores the **Cycle View of a Supply Chain** and its practical applications.

#### Key Stages and Participants
The supply chain encompasses all parties involved, directly or indirectly, in meeting customer demand. This includes manufacturers, suppliers, transporters, retailers, warehouses, and customers. Each stage is interconnected through the flow of products, information, and funds. For example, when a customer places an order on Amazon, it triggers the **customer order cycle**, while Amazon’s procurement from a distributor falls under another cycle.

#### Processes in the Cycle View
The **Cycle View** is instrumental in making operational decisions as it clearly defines the role of each participant. The main participants in a supply chain are:
– **Customers**: They initiate the process by making purchasing decisions. The goal is to convert customer visits into orders.
– **Retailers**: They communicate orders efficiently across the supply chain.
– **Distributors**: They ensure products reach customers in a cost-effective and direct manner.
– **Manufacturers**: They produce goods based on customer orders, interacting with other supply chain members to ensure smooth operations.
– **Suppliers**: They provide raw materials or finished goods, contributing to the overall value of the supply chain.

#### Customer
Customers are at the heart of the supply chain. They make purchasing decisions, and the supply chain’s goal is to convert these decisions into orders. Regular customers allow businesses to develop statistical models for optimizing production and supply chain processes.

#### Retailer
Retailers play a crucial role in ensuring that customer orders are communicated effectively across the supply chain. They manage the flow of goods and services, from raw materials to finished products, ensuring timely delivery.

#### Distributor
Distributors enhance the supply chain by ensuring products reach customers efficiently. They manage logistics, transportation, warehousing, and inventory to meet customer demands.

#### Manufacturer
Manufacturers produce goods based on customer orders. They transform raw materials into finished products and coordinate with other supply chain members to ensure seamless operations.

#### Supplier
Suppliers provide goods or services to other entities within the supply chain. They manufacture or distribute stock items that add value to the supply chain. Suppliers are often manufacturers or distributors themselves.

#### Cycle View in eCommerce
The integration of **Supply Chain Management (SCM)** and **eCommerce (EC)** has created a complementary relationship. While SCM focuses on managing physical workflows, EC enhances the flow of information. Together, they improve efficiency and integration among supply chain partners. For example, EC technologies enable better communication between suppliers and sellers, streamlining sourcing and delivery processes.

#### Conclusion
The **Cycle View of a Supply Chain** is a valuable framework for understanding and structuring supply chain processes. It clearly outlines the roles of each participant, making it useful for operational decision-making, training, and strategy development. However, modern supply chain challenges, such as global operations, unpredictable demand, and sustainability goals, require more advanced models. These include frameworks like the **Push-Pull Boundary**, **Dynamic Network-Based Views**, and **Resilience Models**. While the Cycle View remains a foundational tool, it should be complemented with modern technologies and approaches to address contemporary challenges effectively.

#### Further Reading
1. Bhuvaneswari D. – *An Overview of Supply Chain Management*
[Link](https://www.fibre2fashion.com/industry-article/5123/an-overview-of-supply-chain-management)
2. V. Daniel R. Guide, Terry P. Harrison, Luk N. Van Wassenhove – *The Challenge of Closed-Loop Supply Chains*
3. Zairi, Mohammed, Al-Mashari, Majed – *eCommerce-enabled Supply Chain Management: A Proposed

Post Disclaimer

The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.

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