Supply Chain

Definition

Supply Chain denotes the complete logistical process (life cycle) of a product or service including: raw materials, transportation, manufacturing, distribution, through end-of-life of the product. The supply chain includes a network of organizations (e.g., manufacturers, wholesalers, distributors and retailers) that are involved in the production, delivery, and sale of a product to the consumer.

The supply chain comprises linked processes that begin with the acquisition of raw materials and extend through the delivery of products or services to the end user potentially across modes of transport or utility distribution networks and grids.

Upstream versus Downstream

Upstream Supply Chain is the full range of activities or processes carried out by entities before the involvement of the undertaking. These provide the products or services (inputs) that are used in the development of the undertaking’s own products or services.

This includes upstream entities with which the undertaking has a direct relationship (often referred to as a first-tier supplier) or an indirect business relationship.