Supply Chain- Processes Involved and Benefits

A supply chain or a supply network is in form of a system or a group that consists of various people, organizations, activities, resources, and information; that work together to move a product from the supplier end to the customer end. These supply chains work in the process of accumulation of raw materials and then processes of production like the construction of components, their assembly and merger and finally the product is moved for storage before reaching the customer.

There are a number of people and process involved in the various activities of supply chain right from transforming the raw material and other components to the final finished product that is then delivered to the customers. There are various small groups that are involved in the supply chain and the companies or groups can gain benefits only if the supply chain is managed properly by all the groups.

The supply chain solutions involve the planning, implementing and monitoring the everyday processes of the supply system so that there are no mistakes in the chain. In simple words it means keeping a track of the raw materials and the processing of these raw materials into the finished goods and then their final distribution within the supply chain. If all these processes are handled properly, the system is sure to bring profit to the companies and customer satisfaction.

The supply chain, these days, are taken over by high level management systems that work on different levels like as the operational, tactical, and strategy level. The operational level involves all the short term decisions, tactical level includes the medium- term decisions and the strategic level includes all the long-term decisions. The supply chain companies work according to the distributor network keeping in mind the quantities and the locations of the people who take part in the processes of a supply chain.

The various people, activities and other phenomenon in the supply chain include the Customers, suppliers, production facilities, warehouses, and distribution centres that actively take part in the distribution, the integration of systems and processes through supply chains to share significant information such as forecasts, transportation, and inventory. There are a number of supply chain procedures that are a vital part of the supply chain and these procedures are customer service management, product development and commercialization, distribution, and partnerships.