Understanding the Supply Chain

A supply chain is a system of people, organizations, and activities that work together to move goods or services from the supplier to the end customer. The supply chain can be thought of as a series of links in a chain, with each link representing a different stage of the process of getting a product or service to a customer.

In business, a supply chain starts with the raw materials that are used to make a product, moves through manufacturing, then transportation, then warehoused and stored in a distribution center before being sold, and ending with delivery of a finished product to a customer. Each stage in the supply chain is critical for making sure that the product is produced efficiently, shipped to the right place, and delivered to the customer on time.

Test Your Skills

1. What is included in the supply chain?
a. The use of a product after it has been sold to the end customer.
b. The manufacturing process only.
c. The shipping of a product.
d. Manufacturing, transportation, warehouse/storage, and delivery to end customer.
e. None of the above.

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