Supply Chain - Meaning and Importance
What is Supply Chain?
One of the best ways to define supply chain is by describing it as a combination of different factors that function together to deliver a product or service from the raw material stage to the final delivery stage. The concept of supply chain deals with different aspects of the production process at every stage.
Some of the essential aspects of the supply chain pertain to activities undertaken at each production stage. This includes how the information is communicated, how raw material is transformed into final products, what functions human resources play, and other components required to complete the production process.
Having a well-defined supply chain helps the decision makers understand the market thoroughly and determine how they want to position themselves in the future. The supply chain is also an integral part of a company's strategic planning process; the bigger the organization, the more complex the supply chain. To meet the demands, supply chain planner, a position often organized along product lines, manages the flow of inventory and information from suppliers through end customers. This position ties together the requirements of purchasing/materials management, production, inventory control, and product distribution.
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