A supply chain covers all the players involved in the design of a product.
It therefore includes a wide range of functions, from the supply of raw materials, through production and logistics, to product distribution.
A supply chain is made up of multiple companies and subcontractors. They work together to produce, transport, and distribute goods to consumers.
This complex network therefore incorporates strong interdependencies between the various players and services in the chain. In this context, as soon as one link in the chain is broken, a domino effect is triggered, affecting all the other links and, ultimately, the proper distribution of the product.
When it comes to ecommerce, a supply chain generally consists of the product manufacturer, a wholesaler, a distributor, and a retailer. To offer your customers fast, reliable service, it's vital that all the players in this supply chain function correctly and simultaneously.
A supply chain begins at the company where the product is manufactured. It ends in the “last mile” phase, when the product reaches the customer. In the meantime, it includes all players who may come into contact with the goods, from assemblers to retailers and delivery personnel.
Efficient supply chain management ensures that products meet precise quality standards and are delivered within an agreed timeframe, which can be affected by various factors, such as product demand.
Today, the widespread use of information and communication technologies tends to weaken supply chains.
The phenomenon of globalization is prompting retailers to collaborate with suppliers sometimes located on the other side of the world. While the prices obtained are often more advantageous, the supply chain becomes longer and more complex to manage with international logistics.
Logically, the longer the supply chain, the more fragile it becomes.
Eventually, this can lead to delivery delays or more product damage.
That's why some retailers prefer to buy locally, even if it means a higher distribution cost and passing on a higher price to the end customer. The supply chain is part of a corporate strategy and can therefore differ greatly from one type of business to another.
