A supply chain refers to the network of organizations, people, activities, information and resources involved in moving a product or service from suppliers to customers. Key elements of the supply chain include:
- Suppliers: Provide raw materials, components or services that are used to make products.
- Manufacturing: Activities related to production processes that transform inputs into finished goods.
- Distribution: Involves warehouses and transportation infrastructure to move goods between companies, customers and internationally.
- Retailers: Companies that sell finished products directly to end customers.
- Customers: Individuals or businesses that purchase goods for consumption or use.
An efficient supply chain coordinates these interconnected functions through a system of planning, procurement, manufacturing and logistics to acquire inputs, transform them and deliver final products with the goal of satisfying customer needs. Strategically managing upstream and downstream relationships is crucial for business success.