E-Commerce Dictionary
Supply Chain
Definition
A network between a company and its suppliers to produce and distribute a specific product to the final buyer.
Deep Dive
A supply chain is an intricate network encompassing all the organizations, individuals, activities, information, and resources involved in moving a product or service from its raw material state to the final consumer. This comprehensive system includes everything from sourcing raw materials and manufacturing components to assembling products, warehousing finished goods, and delivering them to distributors, retailers, and ultimately, end-users. It represents the entire journey a product takes, often spanning multiple companies and geographical locations, highlighting the interconnectedness of global commerce.
Examples & Use Cases
- 1Apple's global supply chain involving manufacturers in Asia, component suppliers worldwide, and distribution networks for retail sales
- 2Starbucks' process for sourcing coffee beans from various farms, roasting, packaging, and distributing them to stores
- 3An automotive manufacturer managing the procurement of thousands of parts from diverse suppliers for vehicle assembly
Related Terms
LogisticsInventory ManagementProcurement