The term “supply chain” is everywhere – but what does it really mean? And what are the essentials you need to understand to work in or with supply chains?
Here’s a quick primer:
✅ 1️⃣ What is a Supply Chain?
A supply chain is the end-to-end network of people, organisations, activities, information, and resources involved in moving a product or service from supplier to customer.
It’s not just trucks and warehouses – it’s planning, sourcing, making, delivering, and supporting.
Think of it as the nervous system of any business. If it doesn’t work, nothing else does.
✅ 2️⃣ The 5 Pillars of Supply Chain
📌 Plan – Forecast demand, balance supply, and design the flow of goods.
📌 Source – Find and manage suppliers of materials and services.
📌 Make – Manufacture or assemble products.
📌 Deliver – Transport, store, and distribute to customers.
📌 Return – Manage returns, repairs, and recycling.
✅ 3️⃣ Why It’s Critical
🌍 Global: Supply chains span countries and continents. ⚠️ Fragile: They’re vulnerable to disruptions (remember PPE, chips, and Suez?). ♻️ Sustainable: 90%+ of a company’s carbon footprint is in its supply chain. 📈 Competitive: The best supply chains are a key differentiator.
✅ 4️⃣ Key Concepts to Understand
Lead Time – Time between ordering and receiving. Inventory Management – Balancing stock levels to meet demand without excess. Logistics vs. Supply Chain – Logistics is the movement & storage; supply chain is the whole system. Resilience – Building supply chains that can adapt and recover. Technology – Tools like AI, IoT, and Blockchain are transforming supply chains.
💡 Final thought:
Every product you use – from your morning coffee to your phone – exists because of a supply chain. Understanding them isn’t just for “supply chain people” anymore… it’s essential business knowledge.
