Supply chain is a chain that runs through all enterprises such as suppliers, manufacturers and distributors. Excuse me: What is a supply chain? How to understand the concept of supply chain?

Supply chain is a functional network chain structure around core enterprises, which controls commercial logistics, capital flow and information flow. It starts from purchasing raw materials, manufactures intermediate products and final products, and finally delivers products to consumers through sales network, connecting suppliers, manufacturers, distributors and end users into a whole. It is not only the logistics chain, information chain and capital chain connecting suppliers and users, but also the value-added chain. Materials in the supply chain increase in value due to processing, packaging and transportation, which brings benefits to related enterprises.

Broadly speaking, the supply chain consists of at least two relatively independent legal organizations, which are connected by business flow, logistics, information flow and capital flow. These organizations can be companies that produce spare parts or components, logistics service organizations, and even end users. Supply chain networks usually pay attention not only to single-chain flows, but also to branch flows and aggregate flows in complex networks, because many different customer orders in the network are processed in parallel.

In a narrow sense, the supply chain can also be used for a large company with several subsidiaries distributed in different regions. It can handle the common business flow, logistics, information flow and capital flow with higher efficiency to complete its powerful functions.