Skip to main content

Back 2 Basics

 "What is Supply Chain ?" most basic question asked by the few people. First lets understand what is Supply Chain and then lets move forward to management. 

A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. So lets simplify it further and let me try to illustrate from the figure below 


Let's take the example of a customer walks into department Store to purchase beauty soap. The supply chain begins with the customer and his need for beauty soap. The next stage of this supply chain is the retail store where the customer visits. Store stocks its shelves using inventory that may have been supplied from a finished goods warehouse managed by a party (vendor) or received from third party (vendor). The vendor in turn is stocked by the manufacturer.

The manufacturing plant receives raw material from a variety of suppliers who may themselves have been supplied by lower tier suppliers. For example, packaging material may come from Home- foil (an aluminum foil company) while Home-foil receives raw material to manufacture the packaging material from other suppliers. This forms a typical supply chain.

So if we check this network includes different activities, people, entities, information, and resources. The supply chain also represents the steps it takes to get the product or service from its original state to the customer.

This is the Basic of Supply Chain lets continue basic with Supply Chain Management in Next Post till then see you guys. 


Labels:

Comments

Post a Comment

Popular posts from this blog

Back 2 Basic Continues......

  "What is Supply Chain Management ?"  so we understood what is Supply chain and lets see what is Management and why is it necessary.  Supply chain management  ( SCM ), the management of the flow of  goods  and  services ,  money and information between businesses and locations, and includes the movement and storage of  raw materials , of  work-in-process inventory , and of finished goods as well as end to end order fulfilment from point of origin to point of consumption. Interconnected, interrelated or interlinked networks,  channels  and node businesses combine in the provision of  products  and  services  required by end customers in a  supply chain.  So just to simplify  Supply chain management is the management of the  flow of goods and services  and includes all processes that transform raw materials into final products. It involves the active streamlining of a busine...
Post a Comment
Read more