A supply chain is a system of
organizations, people, technologies, activities, information and resources
involved in moving a product or service from supplier to customer. Supply
chain activities transform natural resources, raw materials and components
into a finished product that is delivered to the end user.
In sophisticated supply chain
systems, used products may re-enter the supply chain at any point
where residual value is recyclable.
Supply Chain Management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and all
logistics management activities.
Importantly, it also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third-party
service providers, and
customers. In essence,
supply chain management integrates supply and demand management
within and across companies. Supply Chain Management is an
integrating function with primary responsibility for linking major
business functions and business processes within and across
companies into a cohesive and high-performing business model.
It includes all of the logistics management activities noted
above, as well as manufacturing operations, and it drives
coordination of processes and activities with and across
marketing, sales, product design, finance and information
A typical supply chain begins with ecological and biological
regulation of natural resources, followed by the human extraction
of raw material, and includes several production links (e.g.,
component construction, assembly, and merging) before moving on to
several layers of storage facilities of ever-decreasing size and
ever more remote geographical locations, and finally reaching the
Companies everywhere are realizing that their supply chain holds
the key to their future success. To be sure, turning the supply
chain into a source of savings, profits, and innovation is no
longer an option exercised by only the most resource–rich
enterprises; rather, it is a key differentiator for all businesses
regardless of size, industry, geography or market served.
There are various ways of realigning the supply chains to help
the society at large by making the small entrepreneurs, farmers,
skilled persons to contribute in fulfilling the need of the
product & services of companies.
This inclusive step will definitely go a long way to
purposefully providing employment to persons and at the same
time improve bottom line of companies.
Those who create environmental and social value alongside
economic value are often considered to have a sustainable triple
There are various measures which can be adopted by companies in
improving their supply chain to attain inclusive growth.
Some of them are like, Direct Procurement from producers/primary
suppliers, Use of Information & Technology, Vendor Development,
Open Tendering, Ancillary Development, Targeted Procurement, and
Unbundling of Contract are discussed in this paper.
By giving effect to inclusiveness, through realigning supply
chain, companies can improve their triple bottom line.
The triple bottom line is a popular concept for understanding
social responsibility among corporations looking to incorporate
non-monetary values into their business model.
It's a method of "true cost accounting," which considers the
impact of production decisions in terms of ecological and social
value, as well as economic value.