Discover Supply Chain Series 1: BUSINESS RELEVANCE OF THE SUPPLY CHAIN

Success of any business entity depends upon the goods and services they provide

to the society and the community, in the form and quantity they want it, with the

constraints of time, this economic activity generates cash,which then comes back

to the business and is then used by the business to compensate the suppliers,

employees and remaining gets reinvested in the business(Some proportion is held

as cash and some is reinvested elsewhere to reduce business risk.)

This cycle of economic activity is the backbone of any civil society and as history

shows whenever or where ever this economic activity is slowed or is nonexistent

there is civil discontentment and which often lead to wars and famine.

With this background it now becomes obvious that better and swifter this business

cycle better will be the peace and prosperity in the society.

Now Supply chain can be conceived as a conveyor which is having material at

different stages of completion. And this conveyor has to move fast without any

breakage and that which is carrying the correct material in the correct quantity and

in a form that, customers wants it.

So at one end of the supply chain the material may be in the form of Iron Ore

(Taking the example of Steel Industry)where as at the other end of the supply chain

it may be with the consumer in the form of Stainless steel which will be used to

make an Chemical reactor.

So supply chain is the lifeline of any business, the supply chain professional is

entrusted with the task of making this conversion cycle smoother and swifter.

This involves building relationships with the supplier who are capable to provide

correct material at the correct time so that it can be converted into

products economically which is then consumed by the customers.

Contd. tomorrow. 06/02/2012