What Is Supply Chain In Simple Words?

What is supply chain management in simple words?

Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products.

It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace..

What is supply chain with example?

Retail companies become involved in supply chain management to control product quality, inventory levels, timing, and expenses. … Examples of supply chain activities include farming, refining, design, manufacturing, packaging, and transportation.

What is a supply chain system?

In commerce, a supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer. … In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable.

What is importance of supply chain?

Boosts customer service: Customers expect products to be delivered quickly and on time. The importance of supply chain strategy is that this process increases customer satisfaction. Reduces operating costs: Supply chain management allows a business to decrease the cost of purchasing and production.

What is another word for supply chain?

Are Supply Chain Management, Supply Network Management, Supply Management, Purchasing, Procurement, Logistics, Operations, Sourcing, Contract Manufacturing, Physical Distribution, etc.

What is the difference between logistics and supply chain?

The basic difference between Logistics and Supply Chain Management is that Logistics management is the process of integration and maintenance (flow and storage) of goods in an organization whereas Supply Chain Management is the coordination and management (movement) of supply chains of an organization.

What are the four types of supply chains?

Supply chain models and simulations in SCM Globe are composed of just four types of entities: PRODUCTS; FACILITIES; VEHICLES; ROUTES. These entities relate to each other and their interactions are what drive supply operations and produce the simulation results.

What are the 5 basic components of supply chain management?

The Top-level of this model has five different processes which are also known as components of Supply Chain Management – Plan, Source, Make, Deliver and Return. Let’s deep dive into each component: Plan: Planning is imperative to control inventory and manufacturing processes.

What are the 5 basic steps of supply chain management?

The 5 essential stages in developing a successful supply chainStage 1: Plan. Planning involves a wide range of activities. … Stage 2: Source. This aspect of supply chain management involves organizing the procurement of raw materials and components. … Stage 3: Make. … Stage 4: Deliver. … Stage 5: Return.

What are the types of supply chain?

The 6 Supply Chain ModelsThe continuous flow models.The fast chain models.The efficient chain models.The custom configured model.The agile model.The flexible model.

What is the difference between procurement and supply chain?

Procurement is the process of getting the goods your company requires, while supply chain management is the extensive infrastructure needed to get you those goods. Supply chain management should ultimately be considered one of many responsibilities faced by a procurement function.

What is supply chain job profile?

Supply Chain Managers are responsible for overseeing and managing company’s overall supply chain and logistics strategy and operations in order to maximize the process efficiency and productivity. In addition, they play a crucial role in developing and maintaining good relationships with vendors and distributors.