published 09/29/2021 By Michael W. Gozzo Purchasing 840 Views 0 Comments

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Most people have a minimal understanding of Supply Chain (SC).  Unless you’re immersed in the impacts of its operation, we typically take it for granted.  Even those who may be part of the SC don’t realize the interaction of the pieces and the subsequent impacts.

After reading this article you’ll have a better appreciation for its workings and be able indirectly affect its performance.

With the Pandemic upon us in 2020, the reactions of some of the general population and the demand on international sourcing of goods has brought the SC into view.  That view is a negative one as to its actions and how narrow its scope is.  This article will provide more insight.

Structure of the Supply Chain (SC):
Our understanding of SC is influenced by the media.  When we read in the various publications and/or on the internet, the area most noted is Logistics (transportation segment).  It's only one facet of the several interacting pieces.

Those facet are:
  • Planning and Inventory Management
  • Procurement
  • Logistics
  • Distribution

Each of these elements interacts with others as part of its functionality.  With these interactions, there will be positive/negative impacts on supply.  The impacts can range from lack of raw materials, production, and port capacity constraints, administrative (import agents) to local distribution limitations.  

The complexity that can exist is a function of how well the facets cooperate. Future articles will address how they each influence the other.  The next article will describe the segments and interaction of:

  • Planning and Inventory Management
  • Procurement