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What is the Supply Chain?

January 25, 2021 4:39 pm

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In business, a supply chain is simply a system of people, actions, materials, information, and resources linked in a specific process. Each process starts with the creation of the idea being marketed, which gets transformed into actions that bring it to life, such as product development, research & development, marketing, distribution, and financial & accounting systems. The ultimate goal of any business, whether large or small, is to maximize its capital, maximize its inputs, minimize its wastes, and return its value to investors. There are five elements that make up the supply chain; plan, source, make, deliver, and return.

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The planning stage is critically important because it allows you to create a clear vision of what your company’s product or service will be, while also allowing you to define your target market. In business, it is critical that you have a solid understanding of your customers, the competition, and what their needs are. It is during this stage that you must determine how to best improve your service, respond to customer inquiries, provide quality products and services, and develop plans to manage your supply chain. Without this crucial planning stage, the entire supply chain could easily fall apart. For help with the BRC Audit, visit MQM Consulting, suppliers of BRC Audit.

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The next stage of the supply chain is that all of the raw materials and components need to be acquired and brought together until the finished product is ready for production. While the actual production process is a complex process involving many moving parts, it is the result of many steps taken together in a precise sequence.

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