Supply Chain Basics
A supply chain is a network of individuals, companies, resources, activities, and technologies used to make and sell a product or service. It starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the consumer. Supply Chain Management or “SCM” 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 activities to maximize customer value and gain a competitive advantage in the marketplace. SCM oversees each stage in the delivery of a company's product or service, from initial creation to the final sale. Steps along the supply chain can add value through efficiencies or reduce value through increased costs or poor design. Ideally, SCM can increase revenues, decrease costs, and impact a company's bottom line. By managing the supply chain, companies can cut excess cos...