What is the supply chain (sc)?

The supply chain is the integration of demand and supply. The supply chain includes suppliers, manufacturers, warehouses, distributors, retailers, and customers.

what is management?

Management is the process of planning, Organizing, Directing and Controlling the activities of an organization for achieving the desired goals within the stipulated time.

What is supply chain management?

The integration of demand and supply is achieved by managing the process of supply chains. The management of those supply chains is called supply chain management.

For understanding supply chain management we need to know from where demand and supply come

Demand –From Customers(customers can be anyone – for a supplier manufacturer is customer, for a manufacturer distributor or retailer or regular customer can be a customer and similarly for distributor retailer is the customer).

supply- From remaining people in the chain(Supply can come from supplier, manufacturer, distributor, retailer)to meet the customer demand.

Was the supply chain is under operation management or it is a separate entity?

Supply chain became an umbrella term where it used to be under operation management which is not anymore in the modern world

As the supply chain is the integration of demand and supply, supply chain deals with suppliers, manufactures, distributors, retailers, customers so due to the huge process of the cycle supply chain is no more a part of operations however operations have begun a part of the supply chain.


In early 1900 there was a keen interest in manufacturing a good quality product so operations were given a keen priority however in present world customer has become the king and utmost priority is given to the customer

so to satisfy his needs .a proper supply chain has been developed that led supply chain management as a broader course and operation management as a keen substitute topic of supply chain management.

For more detailed understanding we can say

Within each company, the supply chain includes all functions involved in fulfilling a customer request(product development, marketing, operations, distribution, finance, customer service)

To satisfy the customer request different teams work in a company

a) The demand which will be there is captured by marketing people on the basis of that data product

b) Development team and operations team will develop new products and ensures the supply of those products to distributors

c) Then distribution team performs its task of helping in reaching the product to the place where the customer want to get that product.

These clearly explain how much importance is given to customer satisfaction which states the supply chain is no longer a branch of operation management.

why is supply chain management growing?

Proper integration of demand and supply is necessary for customer satisfaction and profitability of service providers.

What are the different types of verticals of Supply Chain Management in decision making?

Supply chain management has 3 verticals of decision making

a)strategic level

b)tactical level

c)execution level

what are the different types of flows in the supply chain

a)Product flow

b)information flow

c)demand flow

d)finance flow

A) Product flow refers to the movement of goods from a supplier to a customer, as well as any customer returns or service needs.

Product flows from the manufacturer side to the customer side however sometimes due to reverse logistics products may flow from the customer side to the manufacturer side.

Example: 1) LPG cylinder flow from manufacturer to customer, empty cylinder from customer to the manufacturer for refilling

2) Coke tin bottles flow from manufacturer to customer empty tins from customer to manufacturer

3)Pharmacy and FMCG expired products flow from customer to manufacturer for proper disposal

B) Information related to product availability flow from manufacturer to customer, how much quantity, what type of product from customer to manufacturer accordingly new products can be developed, design can be changed, quantities can be adjusted.

C) Demand flow represents the flow of demand from the consumer to the manufacturer. The demand flow process begins when the information flows from consumer to the retailer ie his intention to buy a product or to have a service. Retailer passes this demand to the wholesaler,  and wholesaler passes demand information to the manufacturer.

D) Finance flow is nothing but the fund’s flow from the consumers to the manufacturer and from manufacturer to supplier. The primary thing which flows in the supply chain is product

Cash; The normal flow of cash source is the customer(positive)

Reverse logistics cash flow from manufacturer to customer

Nature and direction of Flows

a) Flow of information-independent

b) Product,cash-dependent and are related to each other

a) The direction of the product, fund flow is always opposite to each other

b) Product and funds are restricted directions

Cost related decisions are linked with the flow of products-how flow of products is taking in the supply chain.