What is the supply chain?

APICS defines supply chain as “the processes from the initial raw materials to the ultimate consumption of the finished product linking across supplier-user companies” and further defines it as “the functions within and outside a company that enables the value chain to make products and provide services to the customer.” The Supply Chain Council’s definition is “all customer interactions (order entry through paid invoice), all physical material transactions (supplier’s supplier to customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc.) and all market interactions (from the understanding of aggregate demand to the fulfillment of each order).” Given these definitions, it becomes quite clear why the supply chain is the single most important process within company operations. It contains almost all the assets, touches almost all the costs and delivers all the product to the customer.

Traditionally, most companies have focused mainly on what’s inside the “four walls” of the factory to improve operational performance. However, there are significant savings to be realized by improving the performance of the entire supply chain. The difference between an average and well-run supply chain can mean significant profit improvement. VMEC offers a variety of products and services to help Vermont companies optimize their supply chains.