Question

In one paragraph each,

1) describe the Supply Chain activity,

2) explain how it interacts or connects with other Supply Chain activities and,

3) explain how, when successfully managed, this activity supports the overall business.

Answer 1

Solution:

1. Supply chain activities are the activities that are conducted as a part of the supply chain. These activities involve procurement, manufacturing, production, inventory management, and logistics. These activities are primarily considered as the supply chain activities that are necessary to take the finished goods to the end consumer. The combination of all the above activities when conducted at the juncture with each other forms the basis of the Supply chain and is directly related to the success of the supply chain of the business.
   Hence, this is how we define supply chain activities.
   
2. The interaction of these supply chain activities is very crucial because it helps in maintaining the flow of the supply chain. The supply chain agents are responsible for ensuring that the elements of the supply chain are connected properly and the functions operate with harmony with each other. Failure to manage the interaction of the supply chain activities may result in failed supply chain and this can result in additional costs for the business which is definitely not required. Hence, with the use of appropriate supply chain agents, the interaction between the supply chain activities is facilitated.
   
3. When the supply chain activities are properly managed the supply chain operations are in a smooth flow. This means that the efficiency of supply chain is at maximum if the interaction among the supply chain activities is effective. With such efficient supply chain operations the cost implecations of the supply chain are drastically reduced and hence the business faces low supply chain costs which directly impacts the bottom line of the business and hence is very critical for any business to ensure that their supply chain activities are managed successfully to ensure the benefits to the business as a whole.