The supply chain starts with the extraction of raw materials or origination of raw concepts for services.
Each link in the chain processes the material or the concept or supports processing.
The supply chain extends from the raw material extraction or raw concept through many processes to the sale of the final product, goods or services to the consumer.
Supply chain management increases customer responsiveness at least cost.
A material is trasferred from a vendor to the manufacturer and further to distributors, retailers before reaching the ultimate consumers.
SCM includes management of materials, information and capital flow in a network consisting of vendors, manufacturers, distributors and customers.