Friday, 29 August 2014

What’s the Purpose of the Supply Chain?

A supply chain is what we rely on to get products to the end consumers. It is used throughout the entire process of obtaining raw materials and turning them into end products, and sometimes even concerns the recycling of the end product once it’s been used by the consumer. The purpose of the supply chain sounds simple enough, but it involves many different activities and processes, both upstream and downstream.

It involves long term strategic planning and short to medium term managerial planning and control. The supply chain is made up of multiple links and connections that work together to add value to the product at the various stages and ensure the end consumers are satisfied with their purchases. Customers’ needs are the focus but the supply chain has to be cost efficient to ensure the expenses incurred don’t eat into the profits of the company.

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