Decision phases can be defined as the different stages involved in supply chain management for taking an action or decision related to some product or services. Successful supply chain management requires decisions on the flow of information, product, and funds that fall into three decision phases.
Here we will be discussing the three main decision phases involved in the entire process of the supply chain. The three phases are described below:
Supply Chain Strategy
In this phase, the decision is taken by the management mostly. The decision to be made considers the sections like long term prediction and involves the price of goods that are very expensive if it goes wrong. It is very important to study the market conditions at this stage.
These decisions consider the prevailing and future conditions of the market. They comprise the structural layout of the supply chain. After the layout is prepared, the tasks and duties of each are laid out.
All the strategic decisions are taken by the higher authority or the senior management. These decisions include deciding to manufacture the material, factory location, which should be easy for transporters to load material and to dispatch at their mentioned location, the location of warehouses for storage of completed product or goods and much more.