Supply Chain Management in a Constantly Changing World

Before explaining what supply chain management is, it's crucial to understand the meaning of a supply chain. A supply chain can be defined as a network involving suppliers procuring raw materials, manufacturers transforming these materials into final products, and distributors delivering these products to customers. This network, formed by the coming together of all these structures to transfer products and information among themselves, is referred to as the supply chain.

What is Supply Chain Management?

Supply chain management is the design and optimization of all processes involved in the journey of a product or service from the producer to the consumer, ensuring efficiency from end to end. It involves creating business models aimed at increasing customer satisfaction by integrating all activities within the chain. This way, the right product is delivered at the right time, place, and cost to the consumer. Key aspects of supply chain management include managing inventory levels, balancing supply and demand, cost and asset management, cash flow, production, and logistics. Therefore, companies should work with a supply chain strategy and design that suits their needs.