To supply chain or supply chain is the process that allows you to bring to market a product or service, transferring from supplier to customer.
It is therefore a complex process that involves several professional figures , activating numerous processes of the ecosystem-company: from the flow of raw materials linked to the production processes, up to the distribution logistics that delivers the purchased good to the customer.
At the same time, the term supply chain can refer to the more managerial aspects of the distribution chain. In this case it would be more appropriate to use the expression supply chain management (SMC) , which refers to the coordination activities that serve to optimize the individual links of the supply chain supply chain tracking software.
In other words, when we talk about the supply chain we can refer to two aspects: on the one hand, the “practical” phases of planning, execution and control of all the activities related to the flow of materials (and information) that are produced since received an order from a customer; on the other hand, with this expression we can indicate the set of elements that make it possible to carry out these phases.
Before delving into the subject and analyzing all aspects of the supply chain, it is worth pointing out that the modern supply chain has a higher morphology and degree of complexity than the supply chains of a few years ago. This is due to the globalization of markets, the intensification of flows of raw materials and changes in consumer habits (especially with the advent of e-commerce).
Supply chain links
The links in the supply chain are the individual stages that make up the supply chain . It is possible to identify three major main phases which in turn can be broken down into minor processes:
Procurement : refers to how, where and when to request the raw materials needed to make production.
Production : it is the actual manufacturing activity in which raw materials are used.
Distribution : includes all the operations that lead to the delivery of a specific asset to the customer. It is the result of the work of distributors, warehouses, retailers and digital platforms.
When it comes to supply chain can meet the concept of the value chain or value chain . The more rings a product passes through, the higher the final accumulated value will be.