What is Supply Chain Management? Definition, Process & Real Examples | AIMS Education

Definition and Core Flows00:00:09

A supply chain is a global network of entities that facilitates the flow of products, services, information, and cash from raw materials to the end customer.

Supply Chain Strategies00:01:56

Companies employ different strategies including stable chains for cost-efficiency, reactive chains for demand fulfillment, and efficient reactive chains for rapid replenishment.

Manufacturing and Service Models00:03:47

Supply chains exist in both manufacturing and service sectors, involving complex multi-tier networks where suppliers feed into producers to serve end-users.

Vertical vs. Lateral Integration00:06:04

Firms choose between vertical integration, where a company owns its supply network for control, or lateral (horizontal) integration, where they acquire similar companies to achieve economies of scale.

Stages of Supply Chain Development00:08:37

Organizations evolve through five stages of maturity: from multiple dysfunction and semi-functional silos to fully integrated and extended enterprises that share data across boundaries.

Supply Chain Management Overview00:11:19

Supply chain management involves coordinating the storage and movement of goods from origin to consumption, emphasizing the necessity of viewing the entire chain rather than just internal operations.