| A supply chain, also called a supply network is a | | | | and employees are bound to adhere to their |
| system that consists of people, organizations, | | | | decisions to bring about efficiency in the supply chain. |
| activities, resources, and information to move a | | | | Supply chains are managed on three different levels |
| product or service from the supplier to the customer. | | | | such as the operational, tactical, and strategy level. |
| All supply chains initiate with the accumulation of raw | | | | The operational level involves very short-term |
| materials and include further links of production such | | | | decisions, the tactical level is for medium-term |
| as the construction of components, their assembly | | | | decisions, and the strategic level is for long-term |
| and merger, before the product is moved for | | | | decisions. |
| storage and other processes, before finally reaching | | | | The supply chain management system addresses |
| the customer. | | | | certain problems such as management of the |
| The people involved and the activities of a supply | | | | distributor network vis-a vis the quantities and the |
| chain transform raw materials and other components | | | | locations of people who take part in the processes |
| into a finished product, which is ultimately delivered to | | | | of a supply chain. |
| the customer. However, it is important to note that | | | | Customers, suppliers, production facilities, |
| companies, no matter how big they are in size, do | | | | warehouses, and distribution centers also take care |
| not control the entire process of a supply chain. | | | | of the strategies employed for distribution, the |
| Companies reap profits only if their supply chain is | | | | integration of systems and processes through supply |
| well managed. | | | | chains to share significant information such as |
| This means to plan, implement and monitor the | | | | forecasts, transportation, and inventory. |
| everyday processes of a supply chain. It is actually to | | | | The flow of supply chain management is bi-directional |
| keep a track of availability of raw materials, their | | | | and SCM manages the movement of material, |
| processing into finished products, and finally their | | | | information, and finances of the supply chain. There |
| distribution through the supply chain, if managed | | | | are a number of supply chain procedures that are a |
| wisely, would bring laurels to the company and | | | | vital part of the supply chain and these procedures |
| enhance its business, since it would then be able to | | | | are customer service management, product |
| provide a very high level of satisfaction to the | | | | development and commercialization, distribution, and |
| customers. | | | | partnerships. |
| In recent times, supply chains have become a little | | | | The above mentioned processes and activities |
| more complicated than before and their coordination | | | | involved in supply chains have made the supply and |
| is now undertaken by the high-level management of | | | | demand management processes much more |
| the company. Their verdict on the supply chain is final | | | | simplified. |