Supply Chain

Posted in Operations and Supply Chain Terms, Total Reads: 965

Definition: Supply Chain

It represents the phases through which the raw material flows from the supplier to the manufacturer through the physical channel. The raw material is converted into finished good and is delivered to the customer through a distributor.

The global networks are used to deliver products and services to the end customers. It involves flow of raw material through engineered flow of information, physical distribution and cash.

The four essential components of a supply chain are :-

Supplier: Provides the raw material to the manufacturer through the physical channel.

Manufacturer – The manufacturer decides upon the production planning ,scheduling , stock  levels to be maintained etc.

Distributor – It could be a warehouse , retailer ,wholesaler to facilitate the delivery of the product/services to the end consumer .

The flow of finished goods and services is from the supplier side to the customer. However the design and information is given by the customer that flows backward in the channel to the supplier.


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