Understanding the Supply Chain and Strategic Fit

Supply chain management various stages takes a systems view regarding all processes needed to bring a product to the final customer. Hence, the value creation process extends beyond the boundaries of a single business, and involves integrated business processes among the suppliers, manufacturers, and customers (Vanpoucke E. et al., 2009). Purchasing a can of soda at a convenience store can be an example of how a convenience store supply chain functions. The soda starts out with a drink manufacturer such as Coca-Cola, which often uses raw materials suppliers like sugar and a bottling plant. After the soda can are complete they can then be shipped to out to a convenience store where a customer purchases and consumes the soda. After the soda is sold, information is about the sale is sent back to the distributor through sales data. This sales information flows upstream, which gives the opportunity for the distributor to plan production and shipments. The customer pays the retailer, the retailer pays the wholesaler, and each pays its suppliers. Hence, when the customer purchases a soda, the money flows back through the supply chain, completing the financial cycle for that item.