A supply chain shows the process, step by step, from when a product is produced until it reaches the consumer. The chain consists of several links depending on the individual product and how it is produced, distributed and sold.

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Extracting the raw material will often be the first step. Depending on the type of product, the different stages of the supply chain differ from company to company.

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The better the company is at optimizing each stage and the transition between the different stages, the greater the efficiency and profitability.

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If we take cheese, for example, the supply chain is fairly simple.

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Raw material (cow)/Food -> Dairy -> Store -> End user

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If we take a computer, on the other hand, there are a few more links.

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Raw Material -> Factory -> Factory -> Wholesale -> Wholesaler -> Store -> End user

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A study shows that the four things that most often disrupt supply chains are:

1. Rising commodity prices
2. Lack or delay of input e.g. energy
3. Rising salaries (hourly salaries etc.)
4. Logostic-related delays

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There are four main themes when you look at the supply chain. These are integration, operations, procurement and distribution. Including a focus on planning, procurement, demand and inventory management, production and manufacturing, warehousing and transportation and returns.

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There is a TOP 10 list of the most recognized supply chains. You can see and read more HERE.

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There is a wealth of materials available, but no matter how you manage the supply chain itself, don't forget how change affects your company's strategy and the consequences of change.

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Keep an overview of your company's strategy and leave the impact analysis of adjustments and documentation to MakeMyStrategy™.

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Minimize risk and increase growth opportunities

Henning Siersbæk

Executive Vice President

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