The Supply Chain

Definition of Supply Chain

The supply chain is a network of businesses and activities involved in creating and delivering a product or service to the end user or customer.

The supply chain includes all functions involved in receiving and filling a customer request. These include product development, marketing, operations, distribution, finance, and customer service.
Supply chains connect different entities such as suppliers, manufacturers, distributors, and customers.

Planning & Sourcing phase: Involves determining how to satisfy customer requirements, including identifying suppliers and planning delivery of goods to customers.
Making phase: Involves scheduling, testing, packaging, and preparing to deliver the product to customers.
Delivery phase: Carries out the plan to deliver the product or service to customers.
Returns phase: Handles reverse logistics, including returning products, managing product issues, and delivering customer support.

Efficient supply chain management can lead to cost savings, improved customer satisfaction, and increased profit margins.
A well-managed supply chain can provide your business with a competitive edge by reducing costs, improving quality and increasing customer satisfaction.

Risks in the supply chain may include vendor reliability, transportation issues, quality issues, and legal issues.
Supply chain risk management helps in identifying, evaluating, and mitigating these risks to ensure smooth and successful operations.
Through risk management, businesses can ensure that the supply chain is resilient and capable of responding to unforeseen events.

Procurement is the function within a business that is responsible for acquiring goods and services needed for the organisation to deliver its own product or service to its customers.
Procurement strategies greatly impact the efficiency and effectiveness of supply chain operations. The right strategies can lead to better supplier relationships, cost savings, improved quality, and increased customer satisfaction.

Emerging technologies are transforming supply chain operations. Automations, artificial intelligence, and blockchain offer opportunities for efficiency and transparency.
By leveraging technology, businesses can manage complex supply chains, optimise resources, reduce costs, and enhance customer satisfaction.