supply chain is a term that comes up often but which is still misunderstood by some. It is often confused with the logistics. However, logistics is only part of the Supply Chain, one of the steps among the many other steps.
In this article we will try tosimply explain what the Supply Chain is with a concrete example to better understand the subject.
Definition of Supply Chain
The Supply Chain, also called supply chain in French, is a process to plan, implement and control the different flows related to a product: physical, financial and information flows.
In other, simpler words, it is theset of steps and networks related to the marketing of a product, from its manufacture to its arrival in the hands of the customer. Several companies and suppliers appear on the same supply chain over the stages.
Concrete example: the supply chain of a winter hat
An entrepreneur who decides to start selling hats will have to carefully plan the different stages of the supply chain through a solid strategy.
Planning is the first step in the supply chain: coordinating the steps and making solid forecasts.
Then comes the moment of search for raw materials : our contractor will have to choose the material for his hat (wool, cotton) and search for suppliers. This is the time when he has to think about price, quantity, place of purchase, etc.
Next step : the production : choose the place and the factory that will be responsible for transforming the raw materials into a finished product: the hat.
Storage : the hat made must be stored before being shipped.
transport / logistics : the beanie is delivered to stores and distributors
And finally the sale to the customer: the beanie is finally delivered to the customer who bought it in a store or ordered it online.
This is roughly what a supply chain is, knowing thatat each stage, information and finances are exchanged between the various actors in the chain. It is the combination of physical flows (raw materials, transport, etc.), financial flows and information flows that basically make up the supply chain.
Where can I get information on Supply Chain news?
The Supply Chain, being closely linked to technological advances, is changing a lot. For keep up to date with the latest news in relation to the Supply Chain, several possibilities are available to you.
You can consult professional journals such as Supply Chain Brain or Supply Chain Management review.
You can simply go through blogs that deal with Supply Chain news like the mecalux blog Where Amalo Recruitment’s blog.
Or, you can keep yourself informed via social networks such as LinkedIn or through associations such as the ASCM.
The means of information are diverse and everyone can find the medium that suits them best.