IMPROVING THE SCHEME OF THE MECHANISM OF THE SUPPLY CHAIN FORMATION

Abstract

The views of different scholars on the meaning of the concept of «supply chain» are considered. The main elements forming the supply chain are explored: suppliers of raw materials/materials and purchased parts, manufacturers and subcontractors, carriers, warehousing companies, logistics centers, intermediaries, distribution network companies, wholesale companies, retail companies, consumers. The structure of the mechanism of supply chain formation, based on five functions, is offered: planning, purchasing of stocks, production and sales of products, return. Planning finds out the sources of supply, the demand of consumers, the size of stocks, production volumes, raw materials and materials. Procurement is the supply management, selection and evaluation of a supplier, quality control of deliveries, contracting with suppliers. Production is the production process itself, the control over technological changes, the management of production capacities, production cycles, the quality of production, the schedule of industrial changes. Sales are the management of orders, warehouse and transportation. Return is required in case of problems with the orders. The feature of the proposed mechanism is that special attention is paid to information provision. It involves not only collecting and processing the information, but also adoption and implementation of decisions, therefore, it occupies a significant place in the mechanism. The generalization of the structure of the mechanism of the supply chain formation will increase the efficiency of establishing the logistics links of the enterprise.