What defines a 'supply chain network'?

A 'supply chain network' is best defined as the interconnected system of organizations involved in producing and delivering products. This encompasses not only the companies that manufacture and distribute goods but also the relationships and interactions among all parties involved, including suppliers, manufacturers, wholesalers, retailers, and logistics providers. The supply chain network emphasizes the collaborative nature of these entities in delivering value to the end customer and highlights the importance of coordination and communication throughout the entire process.

This definition captures the complexity and multifaceted aspect of supply chains, which extend beyond mere physical transportation or product offerings, focusing instead on the holistic view of how different stakeholders work together to ensure that products are produced efficiently and reach the marketplace successfully. Understanding this interconnectedness is crucial for effective supply chain management, where optimizing processes and fostering relationships can lead to improved performance and competitiveness.