Page 111 - BA1 Integrated Workbook STUDENT 2018
P. 111

Customers, suppliers and supply chains




                           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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