A supply chain consists of an organization’s various activities towards a common goal. A supply chain begins with the decision to manufacture or sell a particular product and then goes on to include its distribution, packaging, marketing, and final sale. It is also called a supply-chain management system and has multiple stages as per the need of an organization. An organization may have several levels of organization, which are responsible for a particular activity.
The complete process of a supply chain can be illustrated by an example. Suppose you want to buy shoes from an outlet. The first step in the supply chain would be to search for the right store, select a pair, order them, and hand them over to your customer. If you are a small business, you can also conduct a comparison study to find out the same stores having a discount on sale. Thus, the supply chain goes on.
Every organization will carry out a certain number of activities to fulfill a person’s needs. In fact, every individual has his or her own needs which should be fulfilled before they can enjoy the benefits of their work. An individual can either be a worker, a farmer, a customer, a borrower, a client, or a supplier. The activities involved in each of these activities have a direct impact on how an organization does business. There are several other activities in the supply chain that help organizations do business successfully. But, the activities involved in the activities that we are going to discuss are those that directly relate to how an organization does business.
The first thing to consider when you are evaluating your supply chain activities is to identify the various roles involved. Each activity in the chain requires the participation of a number of people. The role of a manager is crucial. This person manages the activities to ensure that all the goals of the organization are being achieved. This includes the activities related to production, purchasing, and distribution of products. He is in a position to plan, direct, and supervise the various activities of the company. A person who is not aware of his responsibilities and tasks in the supply chain, cannot play any role in the management of the organization.
The activities carried out by various people must also be evaluated. The activities include but are not limited to, purchasing, production, handling, and shipping. A person who is knowledgeable about the organization should know all these aspects of his job. He should know the processes involved so that he can perform these activities with perfection. All the functions of the organization should be planned before he starts working and implemented.
Once the person is in-charge of the organization, he should know the priorities of the organization. He should be able to foresee what is required and work according to the goals set. He should understand the strategies that are involved in achieving those goals. This person must be able to anticipate changes that may occur in the organization and implement it accordingly.