Supply Chain

Glossery - Supply Chain

Published: 2023-DEC-13

Published by: Christopher Schoeder

A supply chain refers to the network of organizations, resources, activities, and processes involved in the creation, production, and distribution of goods or services from the point of origin to the point of consumption. It encompasses all the steps and entities involved in delivering a product or service to customer..

Typically, a supply chain includes various stages, such as sourcing raw materials, manufacturing or production, storage and distribution, and the final delivery to customer.. It involves multiple entities, including suppliers, manufacturers, distributors, retailers, and customer., who are interconnected through a series of activities and transactions.

The primary goal of a supply chain is to ensure the efficient flow of goods or services, starting from the procurement of raw materials to the final delivery to end consumers. It aims to optimize processes, reduce costs, minimize inventory levels, and improve overall customer satisfaction.

Effective supply chain management involves coordinating and integrating the different activities, information, and resources across the entire chain. This often requires close collaboration, communication, and information sharing among the various stakeholders to streamline operations, enhance visibility, and respond quickly to changes in demand or market conditions.

In recent years, advancements in technology and the rise of globalization have significantly impacted supply chains, leading to the emergence of concepts like digital supply chains, supply chain analytics, and supply chain sustainability. These developments aim to further improve efficiency, visibility, and sustainability in supply chain operations.