When we talk about supply chain we mean the sum of activities and processes required to bring a given product or service to market. Literally "distribution chain", the supply chain is a real network which coordinates the work of the factory with that of suppliers, logistics operators, sales outlets and end customers. It involves numerous company departments, including quality control, logistics and customer care.

The objective is to achieve the highest degree of competitiveness in its target market by optimising the performance of the company.

Given the breadth of the business areas involved in this process, there are many professionals involved. The ITS Supply Chain Course aims to train experts in the organisation and management of so-called logistics 4.0 services. Logistics is, in fact, only one part of the supply chain. Supply chain management encompasses all the steps necessary to bring a product or service to market.

To be able to optimise a company's performance, it is necessary to be able to manage intermodal transport cycles and the logistics infrastructure itself. This is possible by implementing the information systems and the enabling technologies through supply chain management techniques that will be illustrated in the course.

What is the Supply Chain

As we have said, the supply chain is to all intents and purposes a chain, articulated and complex, made up of links which, linked together, allow products to reach the market and thus the customers.

The rings main ones are:

  • ProcurementIt is responsible for managing requests for raw materials needed for the second stage, production, for a given place and time.
  • ProductionAt this stage, raw materials are used to manufacture the final product.
  • DistributionIt is responsible for managing all the operations necessary to deliver a given good or service to the customer. It coordinates the work of distributors, warehouses, retailers and digital platforms.

We can add a fourth link, which concerns the final stage of product distribution:

  • For saleAt this stage, the product or service that has reached the distribution company is placed on the market through sales channels that make it available for purchase by consumers.

In the supply chain, the management of data and the information flows acquires a fundamental importance to organically coordinate all processes. Today's digital systems make it possible to take care of the entire supply chain, from procurement to sales, through software specific. All previous models, strategies and systems need to be updated. If it is well organised, the supply chain's advantage is that it optimises resources, avoids waste and increases customer satisfaction.

A fundamental and related concept is that of value chainthe value chain. The value chain is the sum of all the processes and activities carried out by the company in its industry to increase the value of its product. In this way, the company is able to differentiate itself from its competitors by increasing the competitive advantage. The value is proportional to the number of loops the product or service goes through before being distributed on the market: the more stages, or loops, the product goes through, the higher the accumulated value at the end of the process. 

Author of the article

ITS MOVE - Editor