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Supply chain

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A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials; transformation of these material into intermediate and finished products; and distribution of these finished products to customers.

A supply chain essentially has three main parts, the supply, manufacturing and distribution:

  • The supply side concentrates on how, where from and when raw materials are procured and supplied to manufacturing.
  • Manufacturing converts these raw materials to finished products and
  • Distribution ensures that these finished products reach the final customers through a network of distributors, warehouses and retailers.

See also: trade item.