what is supply chain

A supply chain is a network of individuals and companies involved in creating a product and delivering it to the consumer. It is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or customers. The supply chain can be divided into two stages: production and distribution. In the production stage, components and semi-finished parts are produced in manufacturing centers, while in the distribution stage, finished products are delivered to the end user. The components of a supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers. The functions of a supply chain include product development, marketing, operations, distribution, finance, and customer service. Supply chain management is the process of overseeing the flow of goods within the supply chain in the most efficient manner. It involves the handling of the entire production flow of a good or service, starting from the raw components all the way to delivering the finished product to the end user. Supply chain management is crucial because an optimized supply chain results in lower costs and a more efficient production cycle. Companies seek to improve their supply chains so they can reduce their costs and remain competitive.