The Procurement Glossary » Supply Chain

Supply Chain

Inventory & Logistics

Definition

The end-to-end network of organisations, people, activities and resources that move a product from raw material to end customer.

Explanation

The supply chain spans suppliers, manufacturing, logistics and distribution. Procurement manages its upstream, supplier-facing portion. Its resilience, cost and speed determine competitiveness.

Example

A disruption anywhere in the supply chain — from a mine to a port — can delay the finished product.

Related terms

• Supply Chain Management (SCM) — The coordination of all supply-chain activities to deliver goods efficiently, reliably and at the right cost.
• Logistics — The management of the movement and storage of goods — transport, warehousing, handling and delivery.
• Second-Tier Supplier — A supplier to your supplier — one step removed in the supply chain from the buyer.
• Supply Risk — The risk that supply of a good or service is disrupted, constrained or made more costly.

Frequently Asked Questions

What is Supply Chain?

The end-to-end network of organisations, people, activities and resources that move a product from raw material to end customer. The supply chain spans suppliers, manufacturing, logistics and distribution. Procurement manages its upstream, supplier-facing portion. Its resilience, cost and speed determine competitiveness.

Can you give an example of Supply Chain?

A disruption anywhere in the supply chain — from a mine to a port — can delay the finished product.

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