What is a Supply Chain

1
What is a Supply Chain?

• A supply chain, logistics network, or supply
  network is a coordinated system of organizations,
  people, activities, information and resources
  involved in moving a product or service in
  physical or virtual manner from supplier to
  customer.
• Supply chain activities transform raw materials
  and components into a finished product that is
  delivered to the end customer.
• The primary objective of supply chain management
  is to fulfill customer demands through the most
  efficient use of resources, including
  distribution capacity, inventory and labor.
• Source Wikipedia

2
A Supply Chain Vision

• One may even dream of production so organized
  that no business concern or other economic unit
  would be obligated to carry stocks of raw
  materials or of finished goods picture supplies
  of every sort flowing into factories just as
  machines are ready to use them goods flowing out
  to freight cars and trucks just pulling up to
  shipping platforms merchandise arriving at the
  dealers shelves just when space was made
  available under such conditions the burden of
  expense and risk borne by society because of the
  stocks necessary to the production process would
  be at a minimum.
• Leverett S. Lyon, 1929

3
A Generic Supply Chain
4
Supply Chain Evolution

• Old paradigm- Firm gained synergy as a vertically
  integrated firm encompassing the ownership and
  coordination of several supply chain activities.
• New paradigm- Firm in a supply chain focuses
  activities in its area of specialization and
  enters into voluntary and trust-based
  relationships with supplier and customer firms.