What is a Supply Chain?

Supply Chain Definition

A supply chain refers to a system, or network, between companies and their suppliers to produce and distribute products or services to consumers. This network includes people, organizations, activities, and resources. Companies use supply chains to reduce costs and gain a competitive edge.

FAQs

What are the four types of supply chain models?

The four types of supply chain models are:

  1. Integrated make-to-stock – Monitors customer orders in real-time to efficiently process and restock finished good inventory
  2. Build-to-order – Focuses on producing the product after the customer has placed the order
  3. Continuous replenishment – Replenishes finished goods consistently
  4. Channel assembly – Assembles parts and materials as the product moves through third-party logistics channels

*Source: https://www.avetta.com

What are the 5 basic components of supply chain management?

The five components of a supply chain management system are plan, source, make, deliver, and return.

*Source: https://www.iimu.ac.in

What are the key areas of the supply chain management process?

The supply chain management process is comprised of the following areas:

  • Demand management
  • Supply management
  • Sales and operations planning
  • Product portfolio management

*Source: https://www.anaplan.com

The Cost
of
Mistakes

Delivering new products to market is challenging. And It is difficult to see the cost impact of one or more mistakes.

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