What is Supply Chain ?
The supply chain is the process by which an organization produces 1 product from raw materials supplied by different companies and then, sold to customers. Depending on the size of the organization and the number of products produced, that supply chain can become complex or simple.
What is supply chain management?
Supply chain management is the management of a CONNECTIVE NETWORK of businesses involved in the supply of goods and services to consumers. It requires many different processes, including: Storage, material transport & inventory handling & manufacturing & storage, transporting complete goods from production to consumption …
To gain an overview of Supply Chain Management, we will go through three main issues: Different links in the Supply Chain, Levels of Supply Chain and Technology in Supply Chain Management.
Various links in the Supply Chain
The beginning of the supply chain is the customer. The customer will decide to buy 1 product and contact the company’s Sales department. Orders will be completed with information on: Product, quantity and delivery date.
After receiving the order, the Planning Department will produce a production plan to produce according to customer needs. At this stage, Planning Department will know the materials needed to meet customer needs.
If material is required, the Purchasing Department is notified and they will send the order to the supplier for the delivery of a given quantity of materials on the requested date.