Page 259 - SBL Integrated Workbook STUDENT 2018
P. 259

Using IT successfully





                           Supply chain management





               1.1   What is a supply chain?

                             A supply chain encompasses all activities and information flows
                             necessary for the transformation of goods from the origin of the raw
                             material to when the product is finally consumed or discarded. Supply
                             chains can be either push or pull in nature.


               An example supply chain for the metal used by a car manufacturer is shown below:


                                                                       Ore mining
                                                                        company


                                        Upstream
                                     supply chain
                                                                      Component
                                                                      manufacturer





                                                                           Car
                                                                     manufacturer






                                                                    Car dealerships

                                     Downstream
                                     supply chain



                                                                       Consumer

















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