Supply Chain

Topics: Supply chain management, Automotive industry, Supply chain Pages: 3 (936 words) Published: September 24, 2014
The Topic of interest in this essay is “Supply Chain”
Definition:
A supply chain is a network of suppliers, manufacturer and distributors which helps in transformation of raw materials into valuable products and delivering them to the customers at right price, right place and right time. The concept of supply chain applies not only to the physical products but also to services. In the case of services, suppliers become service supporter, manufacturer becomes service creator and the distributors become service provider. The aim of the supply chain is to create value by providing the customer with products and services efficiently.

The supply chain is not a simple series of connections, rather it’s a complex chain of people and organizations connected to each other and interacting to create value. The various components of a supply chain are explained below:

1. Suppliers/Service Supporter: It refers to person(s), firm(s) or organization(s) that supply raw materials that can be used to manufacture the final product. For example in case of manufacturing car as final product, someone who provides tyres, engines, car chassis or any other part would be called a supplier.

In case of a service, it refers to someone who provides the support in the creation of the service to the customer. For example in case of creating hotel services for customer the catering, the laundry etc. act as service supporter.

In a supply chain there do not exist a single supplier, rather there are multiple suppliers or multi-tier suppliers. The supplier which is closest to the manufacturer is called first tier supplier and the chain goes on to second tier, third tier… as we move away from the manufacturer. For example in car manufacturing supply chain the firms providing engines, windows, car chassis, tyres etc. are first tier suppliers whereas the firms providing steel to manufacture car chassis, rubber to manufacture tyres are second tier suppliers. 2. Manufacturer/Service Creator: It...
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