Very basic introduction to the Supply chain with example

What is a Supply Chain?

The supply chain involves all the stages in fulfilling a customer request.

A customer wanted to buy detergent. He went to a retailer and bought.

 

The retailer actually obtained the detergent from the distributor.

The distributor obtained the detergents from the Wholesaler.

The Wholesaler obtained the detergents from the Manufacture.

The manufacturer obtained the supply of raw materials from the Suppliers.

So, to fulfill the customer’s request for the detergent, continuous interlinked stages are functional. The different stages involved above are –

  1. Supplier– supplies raw materials to the manufacturer
  2. Manufacture– manufactures the detergent using the raw materials and transfers them to the wholesalers
  3. Wholesaler– send to the retailers
  4. Distributors– take from the Wholesalers and provide to the Retailers
  5. Retailers– sell directly to the customers

The major role of the Supply Chain is to integrate Supply and Demand. Here the demand was of detergent from the customer, and the whole stage of the supply chain i.e. Suppliers, wholesalers, manufacturers, distributors and retailers grouped together to maintain the demanded Supply to the customer.

 


 

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