SC0001 | What is Supply Chain?

Supply Chain Basics | This Supply Chain Video explains the topic ‘What is Supply Chain’ with a day to day example. Key discussion points are –

1. What is supply chain?
2. Functions within Supply Chain
3. Workflow in Supply Chain

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Transcript:

What is Supply Chain?

Hello everyone! Welcome to Supply Chain way.com. In this video, I’m going to explain you ‘What is Supply Chain’? Instead of a traditional industry example, I’m going to pick up a day to day example to explain what Supply chain is.

In this example, there is a mother and a son. The son works at an organization which is little outside the city. Considering the well being of her son, the mother wants him to have only home cooked food. So every day she sends home cooked food to her son right on lunch time. Now, Let’s see in detail how she does that!
First, the mother gets the vegetables, rice, dal and all the other ingredients needed to prepare food. Then she uses all the ingredients and prepares food; she then packs it in the lunch box and gets the food delivered to her son right on the lunch time.
In this example, buying all the ingredients needed to prepare food is called SOURCING. The conversion of the ingredients into Tasty Food is the Manufacturing. Getting the prepared and packed food delivered to the son is the Distribution. Sourcing, manufacturing and distribution are the three main functions of the supply chain. Also in this example, the suppliers are from where the mother gets all the ingredients and the customer is her son.

Hence the basic definition of supply chain goes like this –
Supply Chain is the flow of all activities involved in sourcing raw material / parts from suppliers, manufacturing the product and distributing the product to the customer.

This applies to any industry, any product or any service.

We will discuss about key stake-holders in supply chain and other supply chain nuances in the coming videos! Stay Tuned. Thank you!