Characteristics of Supply Chains Term Papers

Three characteristics of supply chains make them a value-added part of an organization.  First, supply chains connect an organization with its partners – both suppliers and customers – for the purpose of delivering and stocking raw materials for manufacturing, as well as for the distribution of finished product to distributors, wholesalers and retailers.  Because they extend across the entire value chain, they offer the potential to significantly reduce costs throughout the organization.

Second, supply chains ensure that the manufacturing division of an organization continues to chug along by providing the manufacturing process with the required inputs in a timely manner.  Without a well-organized supply chain, manufacturing would be haphazard and the organization could not plan production or allow sales to guarantee delivery dates.

Third, supply chains stock the distribution channel and ensure that when customers are ready to buy – the product is there for them to purchase.  When supply chains fail, the company can miss out on major revenues – especially when sales of a given product are “hot.”  Supply chains allow the company to handle the flow of orders from distributors, wholesaler, retailers or customers in an orderly manner.

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