A
supply chain is a
network of
facilities and
distribution options that performs the functions of
procurement of materials; transformation of these material into
intermediate and
finished products; and
distribution of these finished products to
customers.
A supply chain essentially has three main parts, the supply, manufacturing and distribution:
- The supply side concentrates on how, where from and when raw materials are procured and supplied to manufacturing.
- Manufacturing converts these raw materials to finished products and
- Distribution ensures that these finished products reach the final customers through a network of distributors, warehouses and retailers.
The chain can be said to start with the suppliers of your suppliers and ends with the customers of your customer.
