What is a Supply Chain?

Apple Inc. is a name that does not need any introduction. When it comes to supply chain, Apple has consistently been ranked as No. 1 in the world by Gartner.  Why is it that?

A supply chain is a mechanism through which raw materials from the suppliers are first converted and then placed in the hands of the customers in the form of finished goods.

Let’s study the supply chain by understanding how a product flows from the supplier to the customer. However, it is important to note that if a product reaches the customer, then it means that there was a demand for it. So, let’s also understand how this demand information flows.

As you learnt in the video above, there are two distinct types of flows within a supply chain, which are as follows:

1. Product flow: From manufacturer to customer
2. Demand flow: From customer to manufacturer

A typical supply chain involves a variety of stakeholders. A supply chain includes all or some of the following stakeholders depending on the type of industry the organisation operates in:

• Customers
• Retailers
• Wholesalers / Distributors
• Storage locations
• Manufacturers
• Vendors or suppliers

Now that you are aware of the mechanism of the supply chain, in the next segment, you will learn about Apple: an organisation that is touted to have the best supply chain.