Supply chain activities begin with a customer order and end when a satisfied customer has received the product or service.
The term supply chain conjures up images of the product or supplies moving from suppliers to manufacturers to distributors to retailers to customers along a chain; however, it is important to visualise information, finance and product flowing in both directions of this chain.
The term supply chain may also imply that only one player is involved at each stage. In reality, a manufacturer may receive material from several suppliers and then supply several distributors.
A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages.