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In order for you to buy a new T-shirt, someone had to plant a cotton plant, process it, turn it into fabric, cut, sew, wrap, transport it until it reaches the store for purchase. And there’s still reverse logistics. Supply chain management involves the flow of various participants and elements and is directly associated with the results that a company can achieve. Understanding all this dynamics provides process optimization, increased efficiency, and, consequently, customer satisfaction.
What is Supply Chain and How Did It Originate?
A supply chain is a complex and interconnected system that involves all stages that transform raw materials into finished products and deliver them to the end consumer. Involving departments, sectors, processes, technologies, and other agents, the functioning of the chain depends on integration and interaction among the involved parties. The term “supply chain” was implemented in the 1980s and comes from the translated version of the English “Supply chain.” However, the concept of transforming raw materials into finished products dates back to the dawn of humanity. Supply chain management evolved from segmented operations with separately optimized systems to rigid integration, later to flexible integration, until reaching today’s strategic integration.
The Composition of the Chain:
Suppliers: Companies that provide raw materials, components, services, or other inputs necessary for manufacturing.
Manufacturers: Transform the inputs obtained from suppliers into finished products for sale to end consumers. Involves manufacturing processes, assembly, packaging, among others.
Distributors: Essentially the bridge between manufacturers and retailers. These are companies that can store and transport finished products to retailers or even directly to end consumers.
Retailers: Sell the product directly to consumers, through a physical or virtual store.
Consumer: All individuals who purchase or use the products or services.
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