A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials; transformation of these material into intermediate and finished products ; and distribution of these finished products to customers. (Source: Ganeshan & Harrison - Introduction to Supply Chain Management)
A supply chain essentially has three main parts, the supply, manufacturing and distribution:
- The supply side concentrates on how, where from and when raw materials are procured and supplied to manufacturing.
- Manufacturing converts these raw materials to finished products and
- Distribution ensures that these finished products reach the final customers through a network of distributors, warehouses and retailers.
The chain can be said to start with the suppliers of your suppliers and ends with the customers of your customer.
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