supply chain – the network of processes involved in the production and distribution of a product
(Pronounced suh-ply chain)
Note 1/ A supply chain does not just include suppliers delivering to the factory, but the whole process of supplying directly to the customer. It also includes the planning and deciding on the right suppliers for your factory.
Note 2/ Logistics is making physical movement and storage of supplies efficient. Logistics is one part of the supply chain management.
To remember what supply chain means use the following mnemonic:
To supply metal chain (supply chain) to the customer, there's a long network of processes that go into creating and bringing the chain to the point of sale.
Supply chains come in many shapes and forms depending on the process, Supply chains can be simple and supply chains can be complicated. Here's two:
A typical supply chain network:
And a more complicated chain network:
It can get increasingly complex:
The supply chain includes all processes from stock control, sourcing materials, logistics (correct products procured and arriving when needed), storage and distribution.