What is a supply chain?

A supply chain is fundamentally understood as a network of entities involved in producing, delivering, and consuming a product. This definition captures the entirety of the process that goes into making a product available to consumers, starting with the sourcing of raw materials and extending through manufacturing, distribution, and ultimately, consumption.

The concept encompasses various entities, including suppliers, manufacturers, transporters, warehouses, retailers, and customers, highlighting the interconnectedness and interdependence of these players within the supply chain. Each entity plays a critical role in ensuring that products are produced efficiently and delivered effectively, thus impacting overall supply chain performance.

Understanding this comprehensive network is crucial for developing strategic approaches in supply chain management. It enables businesses to identify opportunities for improvements, cost reductions, and enhanced customer satisfaction through better coordination and collaboration among all parties involved.