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The Concept of Supply System in Business

Supply chain managing is the research of including the physical production environment with logistics to ensure satisfactory, consistent and timely source of raw materials, finished goods and services in order to meet the needs of customers. Source chain systems are built around the decisions manufactured by producers and distributors of products. A supply system is identified as a sequence of operations that ensures that things are produced from the point of source to the point of use. It includes all the phases of the supply process – from sourcing, production, travelling and storage space.

There are four stages of the source chain: finding, manufacturing, method of travel and storage area. In source chain, products are extracted from suppliers and converted into finished products. Once sourcing, it’s the first stage of the source process wherein suppliers collect all the vital information about the customers and the suppliers they want to work together with. After finding, manufacturers make and transport the goods, although distributors store items and deliver them to the end users.

Each stage inside the supply sequence has its own particular functions and roles. The creation stage is the central part of the program where companies make and produce goods to be offered to distributors. Good makers will be those who care for the quality specifications of the goods they develop. On the other hand, marketers are those who will take delivery of the items to the owners. And lastly, storage and division are the leftover parts of the provision system in which manufacturers and distributors to store the goods pertaining to end-users and ensure they are be well protected once they happen to be received.

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