We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Supply Chain?

By Shannon Kietzman
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A supply chain is a network of retailers, distributors, transporters, storage facilities, and suppliers that participate in the production, delivery, and sale of a product to the consumer. It is typically made up of multiple companies who coordinate activities to set themselves apart from the competition.

There are three key parts to a supply chain:

  • Supply focuses on the raw materials supplied to manufacturing, including how, when, and from what location.
  • Manufacturing focuses on converting these raw materials into finished products.
  • Distribution focuses on ensuring these products reach the consumers through an organized network of distributors, warehouses, and retailers.

While often applied to manufacturing and consumer products, a supply chain can also be used to show how several processes supply one another. The definition in this sense can apply to Internet technology, finance, and many other industries. A supply chain strategy defines how the network should operate in order to compete in the market, evaluating the benefits and costs relating to the operation. While a business strategy focuses on the overall direction a company wishes to pursue, supply chain strategy focuses on the actual operations of the organization and the path that will be used to meet a specific goal.

Another related term is supply chain management (SCM), which is the oversight of materials, information, and finances as they are distributed from supplier to consumer. The supply chain also includes all the necessary stops between the supplier and the consumer, so its management involves coordinating this flow of materials within a company and to the end consumer.

Supply chain management can be divided into three main flows:

  • The Product flow includes moving goods from supplier to consumer, as well as dealing with customer service needs.
  • The Information flow includes order information and delivery status.
  • The Financial flow includes payment schedules, credit terms, and additional arrangements.
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

By Nasri77 — On May 26, 2011

what is the importance of strict control to the supply chain in housekeeping?

By anon160554 — On Mar 16, 2011

how can we understand the role of supply chain in internet service providers?

By anon124822 — On Nov 07, 2010

what is the importance of supply chain management?

By anon110416 — On Sep 11, 2010

What about compliance (legal) as part of the supply chain as most of the raw materials and even some finished components are imported or exported?

By anon81128 — On Apr 30, 2010

what are the merits of an effective supply chain?

By anon74506 — On Apr 02, 2010

Excellent job on explaining and details on Supply Chain Management!

By anon70565 — On Mar 15, 2010

in steel industries how important SCM.? how implement SCM on existing conventional system of procurement?

By anon60806 — On Jan 16, 2010

Supply Chain in today's world is very critical and a very complex field to manage. With many many variables at hand and many systems and stats report that must be watched and put into consideration, it is quite a challenge to identify the right decisions to make at one point.

And any slight mistake can cost hundreds of thousands if not millions of dollars.

Due to this complexity there is a need to collaborate and share ideas in this field. Taking the initiative, I and some friends in the industry created an online forum for discussion.

By Habsiy — On Jul 25, 2009

Article 3: My point each step in the supply chain is completing each other and we cannot ignore one of them.

Article 2: Green supply chain I think it is that all the process in supply chain going safely without any difficulties.

Article 1: The natural of the products or the raw materials.

By anon37042 — On Jul 16, 2009

What is the importance of packaging in the supply chain?

By anon23156 — On Dec 17, 2008

so what about green supply chain ?

By anon9988 — On Mar 17, 2008

what are the factors to consider when choosing a ship

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.