Supply chain
A supply chain is the connected network of organisations and activities supplying inputs and delivering products or services to customers. Performance depends on coordination, reliability, information and incentives across organisational boundaries. Local cost improvements can create inventory, delays or risk elsewhere, so consider total flow and customer outcomes. The network can involve different degrees of control and partnership; it is not identical to the internal Value Chain model.
Worked example
A retailer’s low-inventory target depends on supplier delivery reliability and transport capacity; a saving in one stage may increase shortage risk in another.
Common mistake
Do not assume optimising each partner’s local cost separately produces the best end-to-end result.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |