What is an effective Supply Chain?

If you were to walk into my office, you would be greeted by an abundance of computers displaying top of the line metrics and data pertaining to Tyson logistics. You would see various teams collaborating with each other as well as third party carriers with the anticipation of producing efficient service. Phones would be ringing and emotions would be running high because the Supply Chain industry is never stagnant. I am constantly amazed by the amount of business Tyson’s Supply Chain department deals with, and more specifically how they are able to manage it. Tyson Inc. has hundreds of offices worldwide and manages a logistics budget of roughly 2 billion dollars. It’s safe to say that a fast and efficient Supply Chain has helped Tyson Foods become the fortune 100 company it is today.

Supply Chain Management has become an increasingly prominent topic in recent years. Largely due to the pandemic, both suppliers and consumers have realized the importance of having a strong supply chain, however, this is no easy task. Supply Chain Management is the design and management of flows of goods and services, including the processes of sourcing and converting raw materials into a final product. An effective Supply Chain must streamline information and materials in the most efficient way possible to maximize value and gain competitive advantage over other companies.

A company's supply chain is not just one department, but rather multiple parts of the company that collaborate with one another to create the final result. For example, Tysons supply chain can be broken down into four moving parts:

1. Planning - This process involves evaluating customer demands with companies manufacturing and supply abilities. It often forces managers to forecast future demands and needs then devise a plan to act accordingly. I was able to see how important planning was this summer when my team, Transportation Strategy, began designing and implementing a plan to combat California’s zero-emission truck fleet regulation that will begin in January of 2024. Numerous ideas have been conceptualized and tested showing me not only how important it is to plan for the future, but how to do it effectively.
2. Procurement - Procurement is the act of sourcing and purchasing materials, services, or other necessities from an external source. This process is very important when building an effective supply chain because supply chains rely heavily on their suppliers. It is important for companies, specifically the procurement team, to have positive relationships with suppliers as it allows them to source the raw materials needed for the manufacturing process. Due to Tyson being such a large company, their procurement team sources a wide variety of products. Throughout my internship I was able to see an intense sourcing of shipment lanes and distribution centers.
3. Production - Production involves the manufacturer aspect of the supply chain, as it? combines and manufactures raw materials into a final product. This step is an extremely important part of the supply chain process as it results in the product that the company is going to sell to customers. In Tyson’s case, product manufacturing involves a large number of farms and processing plants as they deal with an intense number of live-stock due to being in the food industry. Something that I found to be fascinating about Tyson’s plants is how every part of the building has a purpose, from how the assembly line is laid out all the way down to where each specific drain is placed. This showed me how intricate and important the manufacturing process is.
4. Logistics - When most people think of supply chain, they often think of logistics. This is understandable because logistics makes up the largest part of the supply chain and can also contribute to a brand's image. Logistics is the function of the business responsible for transporting, delivering, and storing products to the right place at the right time. In order to ensure an efficient supply chain, companies such as Tyson must constantly monitor their logistical abilities to materialize timely, safe, and cost-efficient deliveries. Being on the Transportation Strategy team, this is largely what my role consisted of. Some of the ways my team was able to help Tyson maintain a strong supply chain is through implementing a Request for Pricing (RFP), transferring out to third party carriers, and creating lane and carrier scorecards among other things. While we are very happy with where Tyson logistics currently stands, it is important to note that no logistics department is ever 100% complete. There is always some way to improve performance or an external factor (for example COVID-19) that will cause you to shift your thinking and processes.

As explained above, Supply Chain is an extremely complex industry with lots of moving parts. It causes those within the industry to constantly be on their toes and generate new ideas to combat these problems in hopes of providing for customers. These exact reasons are why I love supply chain and have chosen it as my major. While I might not be on the “front line,” I love that supply chain gives me the ability to contribute to societal demands while using intense analytical and problem solving skills.?