Supply Chain

A supply chain transforms raw materials and components into a finished product that’s delivered to a customer. It is made up of a complex network of organizations and activities, such as raw materials suppliers, manufacturers, distributors, retailers and the customer.

Supply chain management is the orchestration between these networks comprising procurement, management and storage of raw materials and manufacturing, as well as the moving, delivery, and storing of finished goods and after-market services to create maximum efficiency, lower cost and net value.

Supply chains: From linear to network

To understand the importance of supply chains management, it’s worth first thinking about the importance of a supply chain at its most basic level.

Traditional supply chains follow a linear progression. The output of one step is typically the input of the next step. For instance, suppliers must send raw materials to the manufacturer before the products can be made. If there’s a problem at any step, the entire linear chain is disrupted.

Today’s supply chains, however, are more complex than linear models —they’re sophisticated supply networks that are more flexible and efficient. This helps meet customer expectations for a wide selection of customized, sustainable products and fast deliveries that meet individuals’ specific needs.