The Distribution Process Of The Supply Chain

914 Words Aug 4th, 2014 4 Pages
The network created amongst different companies producing, handling and/or distributing a specific product (Supply Chain Definition, n.d.). This is done when materials flow from suppliers through a company’s operation. Sometimes the materials are transformed into other materials before they are then delivered to their customers and then to their customers’ customers. In general, logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers (Supply Chain Definition, n.d.). The supply chain has three main links which allow information, products and material to flow properly.
The first and main link of the supply chain allows raw materials flow from suppliers and their “upstream” suppliers at all levels. This allows manufactures to receive information from suppliers as well as raw materials. The suppliers of information contribute an important role in this link since they ensure that manufacturers do not lack raw materials and information to develop the needed products for customers (Ivanov, & Sokolov, 2010). Companies, who receive information from suppliers, will generally hire an external researching company that will in return carry out research on the market as well as gather information from consumers. A company can also employ an internal team to also gather information that will help the production department to meet the needs of the consumers. In addition to…
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