Definitions

The AWS Well-Architected Framework is based on six pillars: operational excellence, security, reliability, performance efficiency, cost optimization, and sustainability. AWS provides multiple core components that allow you to design state-of-the-art architectures for your Supply Chain workloads. In this section, we will present an overview of key definitions that will be used in this document.

Today's supply chain customers vision is to augment existing systems (repeal and replace where needed), processes, and people by building a resilient supply chain layer with single pane of glass (SPOG) to view across the organization. This organization uses data-driven, responsive decision-making infrastructure with integrated data system as a foundational building block aided by purpose-built services like artificial intelligence (AI) and machine learning (ML). Such systems can help improve visibility, agility, efficiency, and risk management of an organization while reducing time-to-value realization and expediting the time to market. 

Organizations have multiple work streams within their supply chain business which operate interdependently, with integrated upstream and downstream systems enabling efficient information exchange. This integration is required to exchange information with as little latency as possible. The work streams include demand and supply, planning and forecasting, supplier management, inbound and outbound logistics, material flow and tracking, and sustainability.

Supply chain: A supply chain is the network of individuals, organizations, resources, activities and technologies involved in the creation and scaling of a product. Supply chains manage the flow of materials and products from suppliers through manufacturers to end consumers, including all distribution processes.

Supply chain management (SCM): Supply chain management is a broad term that covers the planning and management of all activities involved in sourcing, procurement, conversion, and logistics of goods or services. It also involves the coordination and collaboration with channel partners such as suppliers, 3rd party service providers and customers and it aims to integrate supply and demand management within and across the organization.

Logistics management: Logistics management is a subset of SCM that focuses on efficient and effective flow and storage of materials, services and related information from the point of origin to the point of consumption. Logistics management activities are normally separated as Inbound and Outbound logistics which includes transportation, warehousing, inventory, order fulfillment, and network design.

Capacity management: Capacity management calculates supplier volume capacity and component consolidation, aggregating data at various levels (part numbers, part groups) for both short-term and long-term fulfillment planning. This process predicts product shortages and enables manufacturers to plan sourcing proactively.

Supplier management: Supplier management is the process of identifying, qualifying, onboarding, transacting and collaborating with the suppliers of materials/goods that are essential for a business or building a product. It involves managing the relationships, performance, risk, and contracts of the supplier. Supplier management helps a business to optimize its supply chain, reduce costs, improve quality and enhance innovation. The supplier can be at different levels known as tiers. For example, Tier 1, Tier 2, to Tier N suppliers.

Warehouse management system (WMS): Warehouse management system is a software solution that offers visibility into a business inventory and manage fulfillment operations. The inventory management is usually aligned to production schedules and its synchronized, orchestrated material feed to make sure parts required at each workstation on assembly line are available, without manual intervention. The activities generally involve:

• Material planning by connecting with supply planning

• Material flow orchestration by connecting inbounds, pick-ups, material feeds at line or station levels

• Process confirmation based on in-station feedback to the assembly workers.

• Action recognition and confirmation based on In-station corrective feedback in connection with the manufacturing shop-floor.

Transport or fleet management: Transport management is the process of planning, implementing, and controlling the efficient and effective movement and storage of goods or services from the point of origin to the point of consumption. It is a key component of supply chain management as it affects the cost, quality and customer satisfaction of the delivered goods. Activities involved in the transport management are:

• Transport mode selection (air, road, or sea) based on speed, cost and environmental impact.

• Route optimization selection based on distance, traffic, weather, road condition.

• Carrier selection based on the best carrier with high efficiency rate.

• Performance analysis based on performance of the transport operations, using on-time delivery, fuel-consumption, and carbon footprints.

• Track and trace of transports in real-time based on the geo-fencing to make sure the on-time delivery and contingency planning.

Sustainability management: Sustainability management is the practice of integrating environmental and social values into the supply chain operations, from sourcing to delivery. It aims to minimize the negative impact and maximize the positive impact of the supply chain activities on the planet. The sustainability measurements in the supply chain management are categorized into

• Environmental sustainability involves reducing the greenhouse gas emissions, energy consumption, water usage, waste generation, and pollution caused by the supply chain processes

Social sustainability involves facilitating the fair and ethical treatment of the workers, suppliers, customers, and communities involved in the supply chain. It also involves respecting the human rights, labor standards, health and safety, and diversity and inclusion of the stakeholders.