Supply chain management

Introduction

This text will be the introduction to the module supply-chain management.

What is supply chain management? Organizations, people, business processes, technology, and information required to produce products or services efficiently. Supply chains are often global, since suppliers and customers may be located across borders.

A supply chain may be very complex with many organizations involved. Still for one single organization, the total supply chain is hidden, since the organization is interacting only with its own suppliers and its own customers.

Example

Making a car

  • What are the components of the car?

  • Who makes the components?

  • What are the components made of?

  • At the start of the supply chain: Raw materials.

In every step, a refinements takes place.

A supply chain depends on exchange of different kinds of documents: Orders, confirmations, invoices etc. When the supply chain is global, even more documents are required. This may be documents related to customs, but also origin of supplies or declarations of what the product contains.

Agreements (SLA´s) define expectations and obligations between the partners.

So a supply chain is about everything that is needed to produce the product or service, including all the information that must be exchanged between the different parts of the supply chain.

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