One thing about supply chain, or oftentimes pertained to as supply network, that you have to be aware of is the fact that it is a reference to a system which consists of individuals, organizations, activities, resources, and even information to move a service or a product from the supplier to the customers. It has been said that all supply chains are initiating the accumulation of raw materials, and even include furthering links of production like the development of components, and the assembly and merger of these components, prior to the products being moved for storage and other process, before finally reaching the customers. Activities and people who are involved in the supply chain has one role to play and that is to convert the raw materials and other components into a finished product, which is being delivered ultimately to the consumers. However, even if that is the case, it is important to note that companies, no matter what size they are, do not possess full control to the entire process of the supply chain. The only way for companies to reap profits if they have a supply chain that is well-managed.
In order for the supply chain to be managed well, they have to be planned, implemented, and even monitored by companies. The purpose of this is to monitor the availability of the raw materials, their processing into end products, and their distribution through the supply chains, because if they are managed wisely, they will bring laurels to the company, improving its business as they will now be able to provide a very high level of satisfaction to the consumers. In this present day and time that we live in, supply chains have become a little bit more complicated in comparison to before, and their coordinations are now undertaken by the high-level management of the company. For the purpose of making sure that efficacy and efficiency is brought about in the supply chain, the verdict of the company concerning the supply chain is final and irrevocable, and the employees have to adhere to their decisions.
The next thing about supply chains that we want you to know of is that they are managed on three levels namely tactical, strategy as well as operational. Know that these levels are different in such a way that tactical levels are for medium-term decisions, strategic levels are for long-term decisions, and operational levels are for very short-term decisions. Not only, we want you to know as well that the supply chain management systems addresses specific problems like management of the network’s distributors, the quantities and the locations of people who are partaking in the processes of the supply chain.
The bottom line is that supply chains influence the way companies become successful.