The Definition of a Supply Chain.

[Audio] Welcome to IoSCM's Introduction to the inner workings of a modern supply chain..

[Audio] A supply chain is a network of businesses and people that are involved in the production and delivery of a product or service to an end-user. Often referred to as 'cradle to grave', an end-to-end supply chain encompasses everything from the design of an item to the sourcing of raw materials and everything else that needs to happen for that product, be it physical or otherwise, to be available to buy or use..

[Audio] In more technical terms, an End to End (E2E) supply chain is the network of all the individuals, resources, activities, organisations, and technology involved in the creation and sale of a product. A supply chain encompasses everything from the delivery of source materials from the supplier to the manufacturer to its eventual delivery to the end-user or customer. Additionally, it encapsulates after-sales service and reverse logistics depending on the nature of the business..

[Audio] Broken down, the key functions of a supply chain include but are not limited to Design, Marketing, Procurement, Logistics, Planning, Manufacturing, Quality Control and Customer Services.

[Audio] A range of other departments and roles also play a key part. They include HR, Finance, Management and other functions found in many modern businesses.

[Audio] A very basic example of a supply chain can be seen from the process of a customer buying an item from a supermarket. A customer goes to a supermarket store to purchase a kettle. The supply chain begins with the customer and their need for that specific item, in this case the kettle. The supermarket fills its shelves using stock that may have been supplied from a finished goods warehouse that the supermarket manages or from a distributor using vehicles supplied by a third party. The distributor, in turn, is supplied by a manufacturer. The manufacturing plant had received the raw material from a variety of suppliers who may have been supplied by lower tier suppliers i.e. packaging material may come from a packaging company while they receive raw materials to manufacture the packaging from other suppliers..

[Audio] The stages involved within a supply chain are influenced by the needs and wants of the customer. Keep in mind the primary purpose of any supply chain is to satisfy customer needs whilst generating profits for itself. To function effectively, each link in the chain needs to work efficiently and within any allocated costs or budgets..

[Audio] The supply chain is a vast network of professionals, functions, businesses and sectors. Each link in the chain relies on everyone else performing their tasks correctly and on time. Why not visit our website to find out how you can develop your knowledge and advance the capabilities of your supply chain with IoSCM?.