One thing about supply chain, or oftentimes pertained to as supply network, that you have to be aware of is the fact that it is a reference to a system which consists of individuals, organizations, activities, resources, and even information to move a service or a product from the supplier to the customers. You may not know about it but supply chains are known for initiating the accumulation of raw materials, including further links of production like the construction of components, and also, the assembly and merger of these components, prior to the product moving for storage and other processes, and before it finally reaches the consumers. Both the people and the activities involved in the supply chain plays a single role and that is to convert all raw materials and other components into a finished product, which is ultimately delivered to the consumers. Yet, what companies have to remember all the time that regardless of their size, they do not control the whole process of the supply chain. The only way for companies to reap profits if they have a supply chain that is well-managed.
In order for the supply chain to be managed well, they have to be planned, implemented, and even monitored by companies. The purpose of this is to monitor the availability of the raw materials, their processing into end products, and their distribution through the supply chains, because if they are managed wisely, they will bring laurels to the company, improving its business as they will now be able to provide a very high level of satisfaction to the consumers. In this present day and time that we live in, supply chains have become a little bit more complicated in comparison to before, and their coordinations are now undertaken by the high-level management of the company. The verdict of the company regarding the supply chain is final and irrevocable, and the employees are bound to follow their decisions to bring about efficacy and efficiency in the supply chain.
Another thing about supply chains that you have to know of is that they are managed on three varying levels and these are operational, tactical, and strategy level as well. These levels differ on the kind of decisions that companies have to do like how the strategic levels are for long term-decisions, operational levels are for very short-term decisions, and the tactical levels are for medium-term decisions. Not only, we want you to know as well that the supply chain management systems addresses specific problems like management of the network’s distributors, the quantities and the locations of people who are partaking in the processes of the supply chain.
All in all, supply chains greatly influence the success and prosperity of the company.