Professional Documents
Culture Documents
What Is Supply Chain
What Is Supply Chain
What Is Supply Chain
Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers,
warehouses, and stores, so that merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, to minimize system wide costs
while satisfying service level requirements.
Description:
1. The SCM starts from the collection of RAW MATERIALS e.g. unprocessed metals/non-metals,
ingredients, extraction, mining etc.
2. Once the collection of RAW MATERIALS is complete, they are sent forth to the SUPPLIER e.g.
large scale refineries/factories where the RAW MATERIALS are refined and processed.
3. The processed materials are bought by the MANUFACTURERS who use the processed materials
to create/form/manufacture products depending on the type of manufacturer e.g. Food,
Appliances, Machinery etc.
4. After the MANUFACTURING is complete, the product is transported/DISTRIBUTED world-
wide or locally depending on the business status.
5. DISTRIBUTION is made to the bulk buying CUSTOMERS e.g. Metro, Hyperstar etc.
6. We, the CONSUMERS then buy the products from these bulk buying CUSTOMERS per our
needs/requirements.