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027 Supply Chain

A supply chain is the end-to-end network of organizations, people, processes, information, and resources involved in planning, sourcing, making, delivering, and returning products or services to satisfy customer demand profitably. Key idea: it is not a company, but a system of interconnected flows. A supply chain consists of three tightly linked flows: Physical flow – materials, products, returns Information flow – demand signals, forecasts, plans Financial flow – payments, credit terms, working capital Characteristics End-to-end: supplier’s supplier → customer’s customer Cross-company and cross-function Dynamic and uncertain Trade-off driven: cost vs service vs risk Principles: why it works this way Systems thinking – local optimization hurts global performance Flow efficiency vs. functional efficiency Variability amplification - bullwhip effect Alignment with business strategy: order winners & qualifiers Link for self-study: https://chatgpt.com/g/g-68249102aa248... 🎅❤️🍀 #Santa8 #SCIM #ChainSeekers