Carrier Terms Beginner

Supply Chain

Also known as: Supply Chain Management, SCM, Value Chain

Definition

The supply chain encompasses everything involved in getting a product from conception to customer: sourcing materials, manufacturing, warehousing, transportation, and final delivery. It’s the entire journey of goods.

Supply Chain Components

  1. Sourcing - Raw materials and suppliers
  2. Manufacturing - Production and assembly
  3. Warehousing - Storage and inventory
  4. Transportation - Moving goods between points
  5. Fulfillment - Order processing and delivery
  6. Returns - Reverse logistics

Supply Chain vs. Logistics

Supply Chain Logistics
End-to-end network Transportation focus
Strategic planning Operational execution
Supplier to customer Warehouse to customer
Broader scope Subset of supply chain

Supply Chain Challenges

  • Global disruptions
  • Demand forecasting
  • Inventory optimization
  • Supplier reliability
  • Transportation costs
  • Visibility across partners
  • Real-time visibility
  • Automation and AI
  • Sustainability focus
  • Nearshoring
  • Multi-channel fulfillment
  • Resilience planning
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