The Basic of Supply Chain

The most basic of supply chain process is where a company purchased raw materials from vendors and transformed it into a finished product in a single step. The company then sells it to the end users or customers. Let’s take a basic example, a boy who wants to sell lemonades. He gets all his materials from his parents. He makes the raw material into lemonades and sells it directly to customers. But, in a realistic business world, supply chains have multiple end products with many vendors supplying different parts of items, components and services that end up with a complete product that is ready to be shipped out or distribute. The flow of materials is also not usually in a linear network but sometimes along multiple networks. Here are a video showing a cartoon example of a very basic supply chain.