Supply Chain

A supply chain is a network of organizations, people, activities, information, and resources involved in the creation and sale of a product, from the initial raw materials to the final customer. It encompasses the entire process of production, processing, and distribution of goods and services. The main components of a supply chain include suppliers, manufacturers, warehouses, distribution centers, and retailers.

For example, consider a smartphone:

• The supply chain begins with the extraction of raw materials like lithium and rare earth metals.
• These materials are then supplied to manufacturers who assemble the components, such as processors and screens.
• After assembly, the smartphones are shipped to warehouses before bEINg distributed to retail stores.
• Finally, customers purchase the smartphones through various retail channels.

A case study highlighting supply chain efficiency is Toyota’s Just-in-Time (JIT) system, which minimizes Inventory costs by receiving goods only as they are needed in the production process. This approach reduces waste and improves overall efficiency in production.