What are the key components of a supply chain strategy?

A supply chain strategy is a plan to effectively manage the flow of goods and services from suppliers to customers. The key components of a supply chain strategy typically include sourcing, production, transportation, and inventory management. Sourcing involves identifying and selecting suppliers that meet a company's requirements for quality, cost, and reliability. Production involves deciding how and where to manufacture products or provide services, and ensuring that production processes are efficient and cost-effective. Transportation encompasses the movement of goods and materials between suppliers, manufacturers, distributors, and customers. Inventory management involves balancing supply and demand to ensure that the right products are in the right place at the right time, without creating excess inventory that ties up capital and increases storage costs. Effective supply chain strategies are essential for companies to remain competitive, reduce costs, and meet customer expectations.

This mind map was published on 1 June 2023 and has been viewed 101 times.