A supply chain is the entire system that moves a product or service from its original source to the final customer. It includes all the organizations, people, activities, information, and resources involved along the way.

Basic idea

A supply chain covers everything from getting raw materials, to manufacturing, to transporting, storing, selling, and sometimes handling returns or recycling. It links many different players, such as suppliers, factories, warehouses, transport companies, distributors, retailers, and customers, in one connected network.

Main steps

Most supply chains can be described in a few main stages. Common stages include:

• Planning what to produce and what resources are needed.

• Sourcing raw materials, parts, and services from suppliers.

• Producing or assembling the goods or delivering the service.

• Distributing and transporting goods to warehouses, stores, or customers.

• Managing returns, repairs, or recycling (often called reverse logistics).

Why it matters

A well-run supply chain helps keep costs low, products available, and delivery times short, which improves customer satisfaction. Problems in the supply chain—like delays, shortages, or poor coordination—can quickly lead to stockouts, higher prices, or lost sales.