← Business Dictionary
Operations

Supply Chain

Everything it takes to get a product from raw material to your customer’s hands — suppliers, manufacturing, storage and delivery.

Example

A delay at one fabric supplier can hold up an entire clothing brand’s festive season launch.

Related terms

Lead Time
How long it takes from placing an order to actually receiving it. Longer lead times force you to hold more stock.
Procurement
The process of finding suppliers and buying what your business needs, at the right price and quality.
Logistics
The moving and storing of goods — warehousing, transport and delivery to the customer.
Inventory
The goods you are holding and have not sold yet. It is cash sitting on a shelf — too little and you miss sales, too much and you are broke but full of stock.

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