What Is Supply Chain Management and Its Critical Components?

Liam Smith
Nov 25, 2020
1 min read

You’re wandering the aisles of your favorite store when you notice a couple of employees wheeling a cart full of products out from the storage room. As they unload boxes and begin stocking shelves, you start thinking about the journey those items had to take before they arrived at this store for customers like you.

That journey is known as the “supply chain,” which is the system of steps organizations follow to manufacture and distribute a product. Many people never give a second thought to the origin of the items they buy, but you’re truly intrigued by the process. You might even be considering a career in supply chain management!

So what is supply chain management? This logistics profession organizes all the details behind the scenes so companies can deliver their goods to the customers who need them.

14 Components of Supply Chain Management:

Professionals who work within the supply chain are part of a team that works together to produce high-quality products efficiently and on budget. Each step of the process is vital to ensuring the financial health of the organization and meeting customers’ expectations.

1.Disposition/investment recovery

2.Distribution

3.Inventory control

4.Logistics

5.Manufacturing supervision

6.Materials management

7.Packaging

8.Procurement and purchasing

9.Product and service development

10.Quality

11.Receiving

12.Strategic sourcing