Supply Chain and Supply Chain Management
What is Supply Chain?
The business of supplying products to customers consists of a long chain of events. It starts with sourcing of raw materials and ends with delivery of products to a retailer or customer. This chain of events is called the supply chain.
The Basic stages of a Supply Chain are the following:
- Sourcing of raw materials, parts and sub-assemblies
- Procurement of raw materials, parts and sub-assemblies
- Shipping of items to manufacturing sites
- Production of items
- Shipping of items to warehouses
- Storage or inventory of items
- Distribution of products to retailers/ customers
- Providing customer service, product-repair and return services
Supply chains also involve the interactions that takes place in each of these stages
What is Supply Chain Management?
Supply Chain Management is managing the flow of goods, information and finances among business networks in the most efficient manner.
People, Process and Technology in Supply Chain Management
Supply Chain Management must have a multidimensional approach involving people, processes and technology.
People are key to Supply Chain Management. People must have the skills and knowledge to efficiently manage the sourcing, manufacturing, storage and transportation of products.
Processes are the actions taken to satisfy customers. They include all the functions in the supply chain- sourcing, distribution, transportation, warehousing, sales and customer service.
Technology is used in Supply Chain Management to connect people and processes. Selection and implementation of appropriate technology is important for Supply Chain Management success.
Global supply chains enables the entry into new global markets access to new technologies and business growth.