What is a 'supply chain network'?

A 'supply chain network' refers to a visual representation of the various entities involved in a supply chain and illustrates their relationships with one another. This includes suppliers, manufacturers, distributors, retailers, and customers, showing how materials, information, and finances flow between these different parties. Understanding the structure and dynamics of a supply chain network is crucial for optimizing processes, improving efficiency, and enhancing communication among stakeholders.

While options such as a list of suppliers, a method for tracking inventory, or a software tool are all relevant aspects of supply chain management, they do not encompass the broader concept of a supply chain network. The focus here is on the interconnectedness and interactions within the supply chain rather than just individual elements or tools used in managing specific functions. Recognizing the relationships within the network allows organizations to identify opportunities for collaboration, risk management, and overall improvement in supply chain performance.