What is a supply chain?

A chain is actually a complex and dynamic supply and demand network. A typical supply chain can be divided into two stages namely, production and distribution stages. In the production stage, components and semi-finished parts are produced in manufacturing centres. The components are then put together in an assembly plant.

What is supply chain management?

Supply chain management (SCM) is the monitoring and optimization of the production and distribution of a company’s products and services. It seeks to improve and make more efficient all processes involved in turning raw materials and components into final products and getting them to the ultimate customer.

How does a supply chain work?

A supply chain is made up of interconnected parts of a whole, all of which add up to finished products bought by customers. Take automobiles, for example. Before a consumer buys a car, iron ore is extracted from the earth. The ore is transported to a plant, where it’s turned into steel, which is made into the chassis of the automobile.