The role of supply chain as a value driver

In this chapter, the basic concepts of supply chain management are explained. It is shown that supply chains in some shape or form are required to deliver products and services we, or our organization need, or think is needed. 

Supply chains vary significantly in complexity and size but (he fundamental principles apply to all operations whether they be large or small, manufacturing or service, private or public sector. Supply chain management is not just for large big name businesses such as Dell Computers, Wal-Mart and Toyota Motors. It is for all businesses and for all operations. 

Take another example. Consider that you are checking in at Zagreb Airport for a return flight to London. You are unhappy to find a long queue. You have discovered that in addition to normal procedures the central computer was down and a screening machine was installed to X-ray all types of luggage as an extra security precaution. In this case, (he supply chain is obviously more complex 

In a typical supply chain, raw materials are procured and items are produced at one or more factories, shipped to warehouses for intermediate storage and then shipped to retailers or customers. If you asked people involved in business to define the term supply chain you would get many different answers. Each definition would reflect the nature of the business and the inputs and outputs produced. For some, supply chain is related to purchasing and procurement, to others it is warehousing, distribution and transportation. Yet for others it would be sources of capital and labour. 

Melnyk and Swink (2002) provide a holistic definition of the supply chain which is the entire network of organizations involved in  

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