Supply Chain Management
2-1
Part 2
Understanding the Supply Chain
What is a Supply Chain?
•All parties involved, directly or indirectly, in fulfilling a customer
request.
•Includes manufacturers, suppliers, transporters, warehouses,
retailers, and customers.
•Within each company, the supply chain includes all functions
involved in fulfilling a customer request (product development,
marketing, operations, distribution, finance, customer service).
2-2
Supplier Manufacturer Distributor Retailer Customer
Upstream Downstream
What is a Supply Chain?
2-3
What is a Supply Chain?
2-4
•Some typical IE/ME activities at the companies:
Company
IE/ME functions
Manufacturer
Facility layout, scheduling
Wholesaler
Inventory management
Distribution center /
warehouse
Material handling, inventory,
transportation
Retailer
Inventory management
Flows in a Supply Chain
•A supply chain is dynamic and involves the constant
flow of information, product, and funds among
different stages.
2-5
Customer
Material
Information
Funds
Supplier
