In the business world, a supply chain, also known as an organizational network, is a network of companies, individuals, activities, resources, and information involved in providing a certain product or service to the end consumer. A supply chain helps in maintaining the quality standards of the products and services that are being provided to consumers. Supply chain plays an important role in the organization of the various tasks in an organization. It is the process that links the products, the sources, the manufacturing processes, the distribution centers and finally the consumers.
When it comes to the organization of activities, there are various stages involved. This involves organizing the different processes involved such as the processing, transportation, storage, and finally the final consumers. These activities include production, maintenance, management, purchasing, selling, financial operations, and other activities related to the product or the services that a company offers to consumers.
There are various organizational networks that are involved with all these activities. However, one must know about the importance of these networks in a business. The various activities involved in a supply chain are categorized under the category of production and they include the following; production of the raw materials, production of the components and the finished products, manufacture and marketing of the finished products. Manufacturing of the products is the process of converting the raw materials into the products that we use. These products include the raw materials from which the materials are manufactured, the products produced from these raw materials, and the products that are sold by the manufacturers.
Selling and marketing of the final products is another part of the chain. Marketing involves the promotion of the products through various channels like advertising, selling, and other promotion of the products. The sale of the products is directly or indirectly achieved through the channels of advertising, marketing, and other promotional methods. Distributing is the process of delivering the products to the consumer directly to their homes or offices. This includes delivering them at the doorstep of the end users, giving them away as gifts, delivering them in packages, and many other distribution channels that may be used for delivering the products.
The distribution activities include the following activities. Transferring the products from manufacturing to the retail stores, selling them to the end users, buying the products for the retail stores, packing the products for the retail stores, giving them away as gifts, and the other activities. In this process, the products are then transported from the retail stores to the consumers where they are sold. and sold again at a later time. In this process, a chain of activities has been created to deliver the products to the end users.
There are different types of systems that help in this chain. Some systems involve manual or automatic transfer, some involve computerized processes, while others involve computerized processes. One way of transferring a product is known as cross-selling and some is known as cross-shipping. Another type of transferring a product is known as cross-selling and it involves selling of the products from a customer to another person and vice versa.