Supply chain management (SCM) connects the activities and organizations that turn inputs into products and deliver them to customers. This lesson introduces the supply chain, explains how SCM differs from a supply chain, and traces the development of the field.
A supply chain is a network of organizations, people, resources, activities, and technology involved in creating and selling a product or service. It can begin with the extraction or supply of raw materials and continue through production, distribution, use, and sometimes returns or recycling.
All flashcards
Supply chain
A network of organizations, people, resources, activities, and technology involved in creating and selling a product or service.
Distribution channel
The segment that moves finished products from manufacturers toward consumers.
Core competency
An activity or capability a company considers central to its business and may choose to keep in-house.
Circular supply chain
A supply chain that keeps products and materials in use longer through reuse, repair, remanufacturing, or recycling.
Supply chain governance
Formal and informal arrangements that clarify partner expectations, responsibilities, and ways to resolve problems.
Quiz questions
Which set names the three broad flows that connect supply chain participants?Answer: Materials, information, and finances.
What does supply chain resilience describe?Answer: The capacity to persist, adapt, or transform when conditions change.
What does a supply chain control tower combine to improve visibility and decisions?Answer: People, processes, data, organization, and technology.
Which three dimensions are considered by the triple bottom line?Answer: Economic, social, and environmental performance.
What happens during cross-docking at a distribution center?Answer: Inbound goods are transferred to outbound vehicles with little or no long-term storage.