Supply Chain Management Fundamentals

Managing the flow of goods, services, and information from suppliers to customers.

Balancing cost minimization and customer satisfaction.

A philosophy focused on providing high-quality products and services throughout the supply chain.

Expenses associated with moving goods and materials through the supply chain.

Different methods of moving goods (e.g., trucks, trains, ships).

Storing goods in warehouses and distribution centers.

Expanding business operations across international borders.

A framework for describing and improving supply chains (Make, Source, Deliver, Return).

Supply chain management encompasses various elements like procurement, production, logistics, warehousing, and distribution. Each element plays a role in the efficient flow of goods and services from source to customer.

Efficient supply chain management is vital for businesses. It allows companies to optimize costs, improve delivery speed and reliability, enhance customer satisfaction, and gain a competitive advantage in the marketplace.

Procurement involves acquiring goods and services from external suppliers. It includes activities like sourcing, negotiating contracts, and managing supplier relationships.

Production refers to the process of converting raw materials into finished goods or services. It includes tasks like manufacturing, assembly, and quality control.

Logistics involves planning and executing the efficient flow of goods and materials throughout the supply chain. This includes transportation, warehousing, and inventory management.

Warehousing refers to storing goods in designated facilities. It ensures that goods are protected, organized, and ready for distribution when needed.

Distribution is the final step in the supply chain, involving the delivery of goods to customers. This includes activities like order fulfillment, packaging, and shipping.

Customer service within the supply chain involves managing customer interactions, inquiries, and complaints. It plays a crucial role in building customer loyalty and satisfaction.

Supply chain transparency means providing visibility into the various stages and processes involved in the supply chain. This helps identify potential risks, improve efficiency, and enhance customer trust.

A supply chain network consists of interconnected organizations involved in the production and distribution of products and services. This network includes suppliers, manufacturers, distributors, retailers, and customers.