In some economic terms appearing in recent decades, "supply chain" is the term that holds an important position and always receives special attention from many people, especially men who learn about transportation and logistics sectors. Check out today's post Johnson's Blog will help you learn the most general way about the supply chain and especially supply chain examples specifically.
Learn about supply chain
Specific examples of supply chains It is always an issue that many interested readers want to know, but before going into specific examples, let's learn about the supply chain.
For the current international integration market economy, the supply chain must be built effectively to be able to do business successfully.
So What is supply chain?? Supply Chain in English is Supply Chain, this economic term began to appear in the 80s and became popular in the 90s. It is understood as a process of transporting inputs.
These factors from the supplier are stored and transported to the manufacturers, where the inputs are transformed into the outputs of the product, through storage and transportation to the destination. distributors, and ultimately to the users of the product.
Simply put, a supply chain is the process of purchasing raw materials, converting them into products, and delivering them to consumers.
The stages of the supply chain always involve meeting customer needs directly or indirectly. Supply chain actors can be manufacturers, suppliers, carriers, air carriers, retailers, and customers.
Currently, many people are still confused about the supply chain and logistics, these two concepts have distinct differences, one is the process in the system and the other is the whole system process. In essence, the supply chain will include logistics.
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Supply chain operations
Supply chain example will be covered in this article but first let's take a look at some supply chain operations.
In general, the supply chain will have some basic activities as follows:
- Inbound Logistics: activities to produce products including receiving, storing, and transporting inputs are called Inbound Logistics.
- Production: The input materials will be converted into output products.
- Outbound Logistics: In this activity, there will be the process of storing, transporting and distributing finished products to stores, resellers, and finally to consumers.
- Marketing and sales: advertising and promotion activities, finding distribution channels, managing relationships between members in distribution channels, determining prices.
- Customer service: this activity helps the product value to be added and maintained.
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Specific supply chain examples
Through supply chain examples we hope to help you better understand supply chain as well as its operation.
Example of a supply chain of Vinamilk, on the market today, surely you are too familiar with dairy products from trademark famous milk Vinamilk. So have you ever wondered how many stages the manufacturer has done to get the product to the consumer?
You can imagine the following, Vinamilk will first look for ingredients from two main sources, the first is dairy farms and the second is to import ingredients from other countries.
After purchasing, raw materials will be moved to the factory for production with an appropriate budget, of course, this cost will be estimated from the beginning. The production stages at the factory will create dairy products
Next, the marketing department and the raw material receiving, production and transportation department must have a close coordination to bring these dairy products to consumers, at the right time, at the right time. And this is not a supply chain only for Vinamilk but also for other big milk brands.
Or an example of a food supply chain of products and goods imported directly from China's Taobao e-commerce platform. First, online retailers will do some formalities to be able to order goods from carriers.
It is the duty of these carriers to place orders with manufacturers on taobao. Goods on taobao will be transported by a Chinese carrier to a Vietnamese distributor and finally to a retailer. Consumers wishing to use goods on the taobao floor will buy directly from these retailers.
>>> See more: Things to know about food production management
Epilogue
So through the above article Johnson's Blog helped you learn more about the supply chain as well as the supply chain examples thereby helping you get a more intuitive view of this business model. Don't forget if you need application advice business management software can contact us.
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