{"id":188479,"date":"2024-09-03T06:30:00","date_gmt":"2024-09-03T05:30:00","guid":{"rendered":"https:\/\/datascientest.com\/en\/?p=188479"},"modified":"2024-09-06T09:04:01","modified_gmt":"2024-09-06T08:04:01","slug":"all-about-the-supply-chain","status":"publish","type":"post","link":"https:\/\/datascientest.com\/en\/all-about-the-supply-chain","title":{"rendered":"Supply Chain: What is it? How does it work?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"188479\" class=\"elementor elementor-188479\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c96de3c e-flex e-con-boxed e-con\" data-id=\"c96de3c\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f1002be elementor-widget elementor-widget-heading\" data-id=\"f1002be\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 02-08-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><p class=\"elementor-heading-title elementor-size-default\">It is vital for all businesses, irrespective of their size, to optimize the Supply Chain. This often complex chain extends from the raw material source to the final product delivered to the end customer. Mastering the supply chain can be the deciding factor between a thriving business and one at risk of failing. So, what exactly does it entail?<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-accda31 e-flex e-con-boxed e-con\" data-id=\"accda31\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4b0b6b2 elementor-widget elementor-widget-heading\" data-id=\"4b0b6b2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">A Complex Supply Chain<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ab36033 elementor-widget elementor-widget-text-editor\" data-id=\"ab36033\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 02-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">The Supply Chain encompasses all the processes and stakeholders involved in transforming raw materials into finished products and delivering them to customers. It includes an entire <\/span><b>network of producers, suppliers, warehouses, transportation companies, distribution centers, and retailers<\/b><span style=\"font-weight: 400;\">.<\/span><\/p><p><span style=\"font-weight: 400;\">The process starts with raw material producers and concludes when the merchandise reaches the <\/span><b>final consumer<\/b><span style=\"font-weight: 400;\">. It\u2019s a complex process as it sometimes involves sourcing components or raw materials <\/span><b>from abroad<\/b><span style=\"font-weight: 400;\">. The Supply Chain also involves managing the associated information and financial flows.<\/span><\/p><p><span style=\"font-weight: 400;\">The concept was theorized by American electronic engineer <\/span><b>Jay Wright Forrester<\/b><span style=\"font-weight: 400;\"> in 1958. Occasionally, the term is translated as &#8220;supply chain.&#8221;<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-ceb12ac e-flex e-con-boxed e-con\" data-id=\"ceb12ac\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4c93651 elementor-widget elementor-widget-heading\" data-id=\"4c93651\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The Difference with the Logistic Chain<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e6774a elementor-widget elementor-widget-text-editor\" data-id=\"4e6774a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The term &#8220;Supply Chain&#8221; is sometimes translated as <\/span><b>logistic chain<\/b><span style=\"font-weight: 400;\">, but this designation is overly restrictive. In reality, the logistic chain is just a segment of the Supply Chain. It becomes relevant when a company receives a customer&#8217;s order and continues beyond the delivery with <\/span><b>follow-up \/ quality control<\/b><span style=\"font-weight: 400;\"> actions. Improving each segment of this chain is the aim of <\/span><b>Supply Chain Management<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a3c9fc2 elementor-widget elementor-widget-image\" data-id=\"a3c9fc2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 02-08-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"900\" height=\"556\" src=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-1.jpg\" class=\"attachment-full size-full wp-image-188482\" alt=\"\" srcset=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-1.jpg 900w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-1-300x185.jpg 300w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-1-768x474.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fc05489 elementor-align-center button-principal elementor-widget elementor-widget-button\" data-id=\"fc05489\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/datascientest.com\/en\/data-courses\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Discover our courses<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-27d3a63 e-flex e-con-boxed e-con\" data-id=\"27d3a63\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e862b86 elementor-widget elementor-widget-heading\" data-id=\"e862b86\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Supply Chain Management (SCM)<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7927604 elementor-widget elementor-widget-text-editor\" data-id=\"7927604\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In 1982, Keith Oliver, a consultant at Booz Allen Hamilton, coined the term &#8220;Supply Chain Management&#8221; in an interview with the Financial Times. The 90s saw the emergence of numerous articles and books on the subject.<\/span><\/p><p><span style=\"font-weight: 400;\">&#8220;Supply Chain Management&#8221; (SCM) aims to optimize the relationships within the supply chain, reducing costs and streamlining the <\/span><b>production cycle<\/b><span style=\"font-weight: 400;\">. Thus, supply chain management is a critical process.<\/span><\/p><p><span style=\"font-weight: 400;\">SCM systems continually strive to enhance processes and speed. They promote <\/span><b>collaboration<\/b><span style=\"font-weight: 400;\"> among various stakeholders in the chain and integrate systems that measure the success or failure of every step within the Supply Chain.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-43746db e-flex e-con-boxed e-con\" data-id=\"43746db\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7b32235 elementor-widget elementor-widget-heading\" data-id=\"7b32235\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What Are the Steps of a Supply Chain?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-620f6fa elementor-widget elementor-widget-text-editor\" data-id=\"620f6fa\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Typically, the key steps of a supply chain include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Planning inventory and manufacturing processes to balance supply and demand<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Procuring or producing materials needed for the final product<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assembling parts<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Testing the product<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Packaging the product<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Potentially storing it in inventory<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transporting the product to the distributor or consumer<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer follow-up<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Handling potential customer returns.<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-ba46339 e-flex e-con-boxed e-con\" data-id=\"ba46339\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-77de4ca elementor-widget elementor-widget-heading\" data-id=\"77de4ca\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Three Types of Flows<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d7dbff8 elementor-widget elementor-widget-text-editor\" data-id=\"d7dbff8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">SCM integrates the management of three types of flows.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Physical flows<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Information flows<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial and administrative flows<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ee3fdd1 elementor-widget elementor-widget-image\" data-id=\"ee3fdd1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1000\" height=\"927\" src=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-2.jpg\" class=\"attachment-full size-full wp-image-188483\" alt=\"\" srcset=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-2.jpg 1000w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-2-300x278.jpg 300w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-2-768x712.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-25a2e1f elementor-align-center button-principal elementor-widget elementor-widget-button\" data-id=\"25a2e1f\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/datascientest.com\/en\/data-courses\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Find a course<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c1461bb e-flex e-con-boxed e-con\" data-id=\"c1461bb\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-982b656 elementor-widget elementor-widget-heading\" data-id=\"982b656\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Physical Flows<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ab69f8 elementor-widget elementor-widget-text-editor\" data-id=\"7ab69f8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">These correspond to the movement and storage of goods, primarily covering logistics activities. Physical flows include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>storage<\/b><span style=\"font-weight: 400;\"> of materials both upstream and downstream.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The management of <\/span><b>transport<\/b><span style=\"font-weight: 400;\"> from the production site to the supplier&#8217;s warehouse,<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Transport from this warehouse to a <\/span><b>store<\/b><span style=\"font-weight: 400;\"> or other <\/span><b>distribution<\/b><span style=\"font-weight: 400;\"> location,<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delivering merchandise to the customer.<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-df6a568 elementor-widget elementor-widget-text-editor\" data-id=\"df6a568\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">More physical flows increase the need for effective Supply Chain management. There are <\/span><b>TMS (Transport Management System)<\/b><span style=\"font-weight: 400;\"> software solutions and <a href=\"https:\/\/datascientest.com\/en\/crm-customer-relationship-management-how-does-it-work\">CRM (Customer Relationship Management)<\/a> systems that assist in managing customer demands, limiting stock-out risks, and avoiding excessive inventory, etc.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8aa2991 e-flex e-con-boxed e-con\" data-id=\"8aa2991\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d39bc20 elementor-widget elementor-widget-heading\" data-id=\"d39bc20\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Information Flows<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-78fe87d elementor-widget elementor-widget-text-editor\" data-id=\"78fe87d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">It\u2019s important to track logistics activities in a database. This database groups data such as:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer personal data<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supplier data<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer reviews<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Etc.<\/span><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a15d9e9 elementor-widget elementor-widget-text-editor\" data-id=\"a15d9e9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This data contributes to the company&#8217;s <a href=\"https:\/\/datascientest.com\/en\/big-data-definition-technologies-uses-and-training\">Big Data<\/a> and includes information on a given article, the means used for its availability, and the stakeholders involved. The database provides crucial information for forecasting required inventories. There are IT tools that anticipate demands, process orders, and manage supplies.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-302e9ae e-flex e-con-boxed e-con\" data-id=\"302e9ae\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5e6ff41 elementor-widget elementor-widget-heading\" data-id=\"5e6ff41\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Financial and Administrative Flows<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1dd0a50 elementor-widget elementor-widget-text-editor\" data-id=\"1dd0a50\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This involves documents related to orders, payments to suppliers and subcontractors, raw material purchases\u2026 All the <\/span><b>financial movements<\/b><span style=\"font-weight: 400;\"> generated by the Supply Chain circulate between its various actors (suppliers, subcontractors, customers, and others). This also includes delivery schedules, payment control, etc. These documents are managed by the purchasing, commercial, sales, and finance departments.<\/span><\/p><p><span style=\"font-weight: 400;\">Monitoring <\/span><b>financial flows<\/b><span style=\"font-weight: 400;\"> helps maintain good cash management. These flows must be processed timely to avoid blockages and processing errors.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-575efc2 elementor-widget elementor-widget-image\" data-id=\"575efc2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-3.jpg\" class=\"attachment-full size-full wp-image-188490\" alt=\"\" srcset=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-3.jpg 1000w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-3-300x200.jpg 300w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-3-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-38553a2 elementor-align-center button-principal elementor-widget elementor-widget-button\" data-id=\"38553a2\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/datascientest.com\/en\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Learn all about DataScientest<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-cffacd5 e-flex e-con-boxed e-con\" data-id=\"cffacd5\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-945f5ac elementor-widget elementor-widget-heading\" data-id=\"945f5ac\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What Are the Main Supply Chain Models?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b328c95 elementor-widget elementor-widget-heading\" data-id=\"b328c95\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-medium\">Continuous Flow Model<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-18a53c7 elementor-widget elementor-widget-text-editor\" data-id=\"18a53c7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This traditional model works well for companies that produce essentially the same products with minimal variation. Managers can optimize production times and maintain stringent control over inventory.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-28b9753 elementor-widget elementor-widget-heading\" data-id=\"28b9753\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-medium\">Fast Chain Model<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-63d672c elementor-widget elementor-widget-text-editor\" data-id=\"63d672c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This model suits companies selling trend-based products, prioritizing quick market delivery.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ecdf7a8 elementor-widget elementor-widget-heading\" data-id=\"ecdf7a8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-medium\">Flexible Model<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7228bb6 elementor-widget elementor-widget-text-editor\" data-id=\"7228bb6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This model is ideal for companies experiencing demand peaks followed by extended demand lulls. Their profitability hinges on accurate forecasting.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5e56b8f e-flex e-con-boxed e-con\" data-id=\"5e56b8f\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7f6a488 elementor-widget elementor-widget-heading\" data-id=\"7f6a488\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">A Competitive Advantage<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3c479a3 elementor-widget elementor-widget-text-editor\" data-id=\"3c479a3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Supply Chain tools make a company&#8217;s products accessible anytime, at the best price, while ensuring customer satisfaction. SCM helps <\/span><b>balance the cost of supply, transportation expenses, and delivery times<\/b><span style=\"font-weight: 400;\">. A well-managed Supply Chain offers a competitive advantage, enabling the company to meet its commitments in the long term.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f245d7 elementor-widget elementor-widget-image\" data-id=\"6f245d7\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1000\" height=\"803\" src=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-4.jpg\" class=\"attachment-full size-full wp-image-188494\" alt=\"\" srcset=\"https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-4.jpg 1000w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-4-300x241.jpg 300w, https:\/\/datascientest.com\/en\/files\/2024\/08\/supply-chain-4-768x617.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a1dd3f9 elementor-align-center button-principal elementor-widget elementor-widget-button\" data-id=\"a1dd3f9\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-md\" href=\"https:\/\/datascientest.com\/en\/data-courses\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Become an expert in Big Data<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4058834 e-flex e-con-boxed e-con\" data-id=\"4058834\" data-element_type=\"container\" data-settings=\"{&quot;content_width&quot;:&quot;boxed&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a2576fd elementor-widget elementor-widget-html\" data-id=\"a2576fd\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<script type=\"application\/ld+json\">\r\n{\r\n  \"@context\": \"https:\/\/schema.org\",\r\n  \"@type\": \"FAQPage\",\r\n  \"mainEntity\": [{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"What is the supply chain?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"The supply chain encompasses all the processes related to the production, transportation, and distribution of goods and services.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Why is supply chain management important?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"Effective supply chain management reduces costs, improves product quality, and ensures timely delivery, thereby increasing customer satisfaction.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"What are the main components of the supply chain?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"The main components include procurement, production, logistics, inventory management, and distribution.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"What are the common challenges in supply chain management?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"Common challenges include managing demand fluctuations, supply chain disruptions, and optimizing costs while maintaining quality.\"\r\n    }\r\n  }]\r\n}\r\n<\/script>\r\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>It is vital for all businesses, irrespective of their size, to optimize the Supply Chain. This often complex chain extends from the raw material source to the final product delivered to the end customer. Mastering the supply chain can be the deciding factor between a thriving business and one at risk of failing. So, what [&hellip;]<\/p>\n","protected":false},"author":45,"featured_media":188481,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"content-type":"","inline_featured_image":false},"categories":[2420],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.7 (Yoast SEO v21.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supply Chain: What is it? 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