Student Number: DLSCM/NRB/3384/13
Course: Supply Chain Management
10/31/2013
Table of Contents
Introduction
Supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer (Anna, 2006). It is also defined as a set of linkages providing goods and services to end users and to intermediate customers (Chartered Institute of Purchasing & Supply, 2009). It is a complex dynamic supply and demand network which is also regarded as part of the overall value chain, which has both demand and supply components that need to be balanced dynamically at levels of uncertainty and risk, and which focuses on optimizing net value added at each linkage, as well as in total to the end user (Wieland & Wallenburg, 2011).
A linkage is defined as a connection or relationship between two or more parts; a part that connects two or more things (Merriam Webster, 2013). According to Business Dictionary (2013) linkage is defined as relationship and interaction between tasks, departments and organizations that promote flow of information, ideas and integration in achievement of shared objectives. Shared objective in supply chains is customer satisfaction through timely delivery of the right product in the right condition (Coyle, Bardi & Langley, 2003).
Supply Chain Linkages
Supply chain consists of various linkages: upstream linkages also known as sources of supply, internal linkages inside the organizations involved in supply chains and downstream linkages which include distribution and ultimate customers (Hugo, Badenhorst-Weiss & van Rooyen, 2002).
Upstream Linkages
Upstream linkages consist of suppliers and manufacturers/producers. Suppliers include suppliers who supply materials and other goods required by producers. The upstream linkages are important in ensuring material flow from suppliers and their upstream suppliers (Baltzan, 2008).
Suppliers and their
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