Lesson 02
Lesson 02
Lesson 02
SUPPLY CHAIN
MANAGEMENT
Organizations are increasingly concentrating Lesson Objectives:
on their core competencies and on becoming more
At the end of this lesson, you will be able to:
flexible and agile. To accomplish these objectives,
these organization should constantly monitor the ● Describe e-commerce and its components
supply of the necessary goods and services. It is ● Identify the different types of e-commerce according to
vital because it is used create and deliver the degree of digitization and participants
products, information, and services to end ● Describe the advantages and disadvantages of e-
customers. The flow of materials, information, commerce
money, and services from raw material suppliers, ● Discover companies that utilize e-business and e-
through factories and warehouses, to the end commerce and describe its importance in the business
customers is called supply chain.
world nowadays.
The diagram depicts a food chain which is a series of
organisms interrelated in their feeding habits, the smallest
being fed upon by a larger one, which in turn feeds a still
larger one. It shows the transfer of energy from one animal to
another. The food chain is comparable to a supply chain that
is widely used in businesses nowadays. It is a network
between a business and its suppliers to produce and distribute
a specific product to the final buyer. This network includes
different activities, people, entities, information, and resources.
Supply chains improve trust and collaboration among supply
chain partners, thus improving supply chain visibility and
inventory velocity.
Supply chain visibility is the ability for all organizations in a supply chain
to access or view relevant data on purchased materials as these materials
move through their suppliers’ production processes and transportation networks
to their receiving docks. The sooner a company can deliver products and
services after receiving the materials required to make them that is, the higher
the inventory velocity the more satisfied the company’s customers will be.
BELOW IS A DIAGRAM OF A GENERIC SUPPLY CHAIN.
The Structure And Components Of Supply Chains