Term of the Day - 7 May 2024

Today’s Term is “Supply Chain”.

A Supply Chain is a network of interconnected entities, organizations, processes, and activities involved in the production, distribution, and delivery of goods or services from suppliers to end customers.

Key aspects of a Supply Chain include:

1. Suppliers: Suppliers provide raw materials, components, or services required for the production process. They are the starting point of the supply chain.

2. Manufacturers/Producers: Manufacturers or producers transform raw materials and components into finished goods through manufacturing or production processes.

3. Distribution: Distribution involves the movement and storage of finished goods from the manufacturer to wholesalers, retailers, or directly to customers.

4. Retailers: Retailers sell goods to end customers through physical stores, online channels, or other distribution channels.

5. Customers: Customers are the ultimate consumers of goods or services provided by the supply chain. Their demand drives the entire supply chain process.

6. Logistics: Logistics refers to the management of the flow of goods, information, and resources throughout the supply chain, including transportation, warehousing, inventory management, and order fulfilment.

Overall, a Supply Chain encompasses all the activities and processes involved in delivering products or services to customers, from sourcing raw materials to delivering the final product, and plays a crucial role in meeting customer demands, optimizing efficiency, and driving business success.