From the course: Supply Chain Foundations

What is a supply chain?

From the course: Supply Chain Foundations

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What is a supply chain?

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- So, what is a supply chain? Well, supply chains buy things, make things and move things, which is why they're so easy to understand. We all buy, make, and move things every day. Let's take a sandwich, something we've probably all made. What do you need to make that sandwich? Well, I guess it depends, but let's make a really good turkey, bacon, swiss sandwich. We'll need fresh bread, some high quality sliced turkey, a nice slice of swiss cheese and some delicious bacon. Alright, let's add some lettuce, tomato, and mayo. So how do we begin? In supply chain, we start with purchasing. Some people call it procurement. So what's your favorite grocery store? Why do you like them? Even if you like them, they may not have all the ingredients you want for your sandwich. Maybe you want the bread from your favorite bakery. Perhaps the best veggies come from the farmer's market. You all have your preferences. You probably have a budget and maybe your limited time forced you to buy everything from one store. In any case, procurement of your materials is now complete. Let's move on to stage two of our supply chain, manufacturing and operations. This is where we take our materials and turn them into a sandwich, but it's getting late. You have to hurry to get to work on time. Still, you want to toast that bread. The bacon needs to be cooked, plus, you need to slice the veggies and don't forget to put away the leftovers and clean up that mess. Doing these things the right way, doing them quickly and being able to do this on a day-to-day basis, that's what the folks in operations are doing every day. Without them, there is no sandwich. Not quite done yet, though. The third stage of supply chain is logistics and transportation. We need to safely get that sandwich to work and it needs to stay fresh until lunchtime. Packaging the sandwich, getting it to work safely, storing it in a cool place at the office. Do you have the materials and the equipment to transport and store that sandwich? If so, congratulations. The supplies have been turned into a wonderful sandwich that is where you want it when you need it. That's what supply chains do. They buy things, make things and move things but that was just one sandwich. How about if you had a restaurant that made hundreds of sandwiches a day? How about if your restaurant wanted to offer all sorts of sandwiches and sides? What if someone wants to place a special order? What if your customers want organic ingredients from socially responsible suppliers that are all local? What happens if you plan on delivering food to customers? Is your company prepared to deal with all of those issues? Supply chain managers are ready for all of that. That's what they think about. That's what they do. Purchasing, operations, and logistics, these are the primary parts of modern supply chain. Every product has a story. Supply chain managers have the power to write that story and give it a happy ending. Consider your car, phone, shirt, or perhaps your stay at a nice resort. Consider the characters in your story. Who bought the materials? How did their decisions make your product better? Who created the product or service for you? Was your product delivered on time? Yes, your purchase made you happy, but now it's your turn. Are you ready to become a supply chain manager that makes your customers happy?

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