To operate effectively, a supply chain has other valuable and required links that are often overarching across a business, as opposed to a separate link within the chain.
Human Resources – key to any effective supply chain are the employees who work for the businesses involved. The saying ‘your employees are your biggest asset’ is a well-known blueprint for success within most effective organisations.
Finance – Finance within the supply chain generally involves using technology to automate transactions to track the approval of invoices and settlement processes from initiation to completion. This has largely been driven by increased globalisation and supply chains becoming more complex.
IT Services/Tech Departments – There are probably not many modern businesses operating without technology. Even the ice cream van now takes card payments! Within every function of a supply chain, there is a need for systems. The larger and more complex a supply chain usually means more programmes and technical systems are in place. It is also commonplace for supply chains to have systems that link seamlessly with their suppliers (products and services) to access data in real-time. This could be anything from the location of parts to delivery data for customers. While supply chains can utilise ‘off-the-shelf’ programmes, they will still require technical expertise to manage, modify and fix any issues or to upgrade their systems to new requirements.
Retailers – It is worth adding that retailers play a key-role in the success of many supply chains, yet they are often overlooked! A retailer is a person or business selling goods to consumers. If you have finished products you can sell them direct to your customers or you can partner with retailers to do this for you.
Keep in mind overarching every part of a supply chain; there are other business functions and professions required to achieve strategic objectives of a business.
In summary the typical components of a supply chain include:
- The Customer,
- The Supplier,
- Production/Manufacturer,
- Distributor,
- Retailer.
These components all contribute to the flow from the initial requirement to the final product being with the customer – the cradle to grave, or E2E supply chain.
To be effective, every link in the supply chain needs to understand the importance of their role and work towards the same common goals as each other part of the chain.