What is a Supply Chain?

by Subha Varadan; Updated September 26, 2017

This article defines the supply chain and identifies the scope and need for supply chain management.

Definition

Supply Chain is also known as the Value Chain or a Demand Chain. This system that consists of organizations, information, resources, people, technology and activities that bring products or services from a supplier to a consumer is called as a supply chain.

Components

A company’s supply chain flow consists of: suppliers from whom the company gets the raw materials, the procurement department, the production department, the distribution department and finally the end customer.

Significance

Identifying the supply chain and the flow of goods and information allows companies to develop more efficient systems.

Supply Chain Management

Supply Chain Management is often defined as the integration of key business processes from the end users to the original suppliers. Information sharing across the different organizations is a critical part of supply chain management.

Scope

Supply chain management covers key business processes related to customer relationship management, demand management, manufacturing flow, procurement and product development.

Potential

Improvements in Supply Chain Management is constantly evolving over the decades to include web based information portals, automated system and delivery on demand strategies.

Resources

About the Author

Subha Varadan has a bachelor's degree in architecture from India and an M.B.A in finance and supply chain management from California State University East Bay (CSUEB). Varadan won the "Outstanding Graduate Achievement Award " for her M.B.A. She has primarily written on financial topics for Demand Studios from 2008 and has been published on eHow.