Supply Chains: Definitions & Basic Concepts

Supply Chains: Definitions & Basic Concepts


What’s a Supply Chain? 

A supply chain is the collection of processes and resources required to make and deliver a product to the final customer.

What is included in a supply chain?

A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, through to its eventual delivery to the end user.

Why supply chain management is important?

Supply Chain Management. Supply chain management involves optimizing your operations to maximize both speed and efficiency. Speed is important because customers value fast service. Increasing speed, however, can cause costs to skyrocket, so maximizing efficiency is equally important.

What is a supply chain role?

In commerce, supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. ... Marketing channels play an important role in supply chain management.

What is the supply chain process?

Supply Chain Management - Process. Advertisements. Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost-effective. A supply chain is the collection of steps that a company takes to transform raw materials into a final product.

What are the flows within a supply chain?

Supply Chain is the management of flows. There are Five major flows in any supply chain: product flow, financial flow, information flow, value flow & risk flow. The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.
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What is the difference between logistics and supply chain management?

Logistics Management is a small portion of Supply Chain Management that deals with the management of goods in an efficient way. Although, if we talk about Supply Chain Management, it is a broader term which refers to the connection, right from the suppliers to the ultimate consumer.
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