Supply chain network

A Supply Chain Network (SCN) is an evolution of the basic supply chain. Due to rapid technological advancement, organisations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence and connectivity between more organisations, this constitutes a supply chain network.

Businesses are often part of a larger network of organisations, a supply chain network can be used to highlight interactions between organisations; they can also be used to show the flow of information and materials across organisations. Supply chain networks are now more global than ever and are typically structured with five key areas: external suppliers, production centres, distribution centres (DCs), demand zones, and transportation assets

All organisations have or can purchase the components to build a supply chain network, it is the collection of physical locations, transportation vehicles and supporting systems through which the products and services firm markets are managed and ultimately delivered.

Physical locations included in a supply chain network can be manufacturing plants, storage warehouses, carrier crossdocks, major distribution centres, ports, intermodal terminals whether owned by a company, suppliers, a transport carrier, a third-party logistics provider, a retail store or an end customer. Transportation modes that operate within a supply chain network can include the many different types of trucks, trains for boxcar or intermodal unit movement, container ships or cargo planes.

There are many systems which can be utilised to manage and improve a supply chain network include Order Management Systems, Warehouse Management System, Transportation Management Systems, Strategic Logistics Modelling, Inventory Management Systems, Replenishment Systems, Supply Chain Visibility, Optimisation Tools and more. Emerging technologies and standards such as the RFID and the GS1 Global Standards are now making it possible to automate these Supply Chain Networks in a real time manner making them more efficient than the simple supply chain of the past.

A supply chain network can be strategically designed in such a way as to reduce the cost of the supply chain; it has been suggested by experts that 80% of supply chain costs are determined by location of facilities and the flow of product between the facilities. Supply chain network design is sometimes referred to as 'Network Modelling', due to the fact a mathematical model can be created to optimise the supply chain network.

...
Wikipedia