When you decide to set out on a supply chain career, it may not be because you’ve studied the topic thoroughly and understand the complexities or even the basics of supply chain management.
For example, maybe you are interested in goods transportation and want to work in that field. It could even be that you already work for a supply chain organisation, but have realised that you know little about how your role or department fits into the grand scheme of things.
If these or similar scenarios apply to you, then there’s no shame in wanting to begin by learning the absolute fundamentals. So why not begin with the answer to the most basic question of all: What is a supply chain?
Supply Chain: A Brief Definition
A supply chain is the network without which you wouldn’t have anything. From the food that you eat to the roof over your head; if there was no chain of people, organisations and resources working together to provide those items, you would starve.
Now before you argue that you can grow your own food, hold up… To begin with, where would you get the seeds to grow your food source? Wherever you get them from, a supply chain would have to exist. Even if a friend gives you some seeds, he or she would have to get them from somewhere – and that’s the supply chain in action.
It’s About Much More than Seeds
So in essence, that’s the answer. A supply chain begins with raw materials and ends with a finished product in the hands of a customer or consumer.
While it sounds simple; and in theory, it is, a lot of other activities also contribute to supply chains, including for example, product design, but as this was a nutshell definition of what a supply chain is, it would defeat the object to contemplate the finer details here and now.
The Building Blocks of Any Supply Chain
Having worked in this field for over three decades, I’ve found it helpful to think of supply chains as having a few core elements that show up regardless of the industry or product involved.
Sourcing and procurement. This is where it all starts. Someone has to find and acquire the raw materials or components. Whether that’s cotton for clothing, steel for machinery, or cocoa beans for chocolate, the supply chain begins the moment someone decides where to get the stuff.
Production or manufacturing. Raw materials get transformed into something else. This could be a factory floor assembling electronics, a bakery turning flour into bread, or a sawmill processing timber. The complexity varies enormously, but the principle is the same.
Storage and warehousing. Products rarely go straight from production to the end customer. They sit somewhere in between, waiting to be needed. How and where you store things has a massive impact on cost and responsiveness.
Transportation and logistics. Moving things from point A to point B. Sounds straightforward, but honestly, this is where a huge amount of supply chain complexity lives. Modes of transport, routing, customs, carrier relationships. It adds up quickly.
Delivery and fulfilment. The final stretch. Getting the product into the hands of whoever wants it, whether that’s a retailer stocking shelves or a consumer receiving a parcel at their door.
Why Understanding This Matters
I meet people all the time who work in one part of a supply chain without really grasping how their piece connects to everything else. A warehouse supervisor who doesn’t understand why certain products get priority treatment. A transport coordinator who can’t see why dispatch timing matters so much. A procurement officer who focuses purely on unit cost without considering what happens downstream.
The thing is, supply chains are systems. What happens in one area ripples through to others. When you understand the whole picture, even at a basic level, you start making better decisions in your own corner of it.
A guy I worked with years ago put it well. He said that before he understood supply chains properly, he thought his job was moving boxes. After he got it, he realised his job was keeping promises to customers. Same tasks, completely different perspective.
A Great Way to Learn More
If you’d like to understand those finer details of how supply chains function, along with all the essential fundamentals, you’ll find it all in my book “What is Supply Chain Management?” To see an overview and learn about the great package of free bonus learning materials that ship with the book, just visit the product page here at Supply Chain Secrets Books.
i like it
Thanks Edson, I’m glad you enjoyed it.