What is a supply chain?
A supply chain refers to all the ingredients, processing, manufacturing and distribution that goes into producing what we buy. It refers to the entire process of how a product gets made and delivered to you. It involves a sequence of steps and multiple companies and people working together.
Most supply chains can be simplified into 3 stages:
Stage One
Raw Materials – such as the raw ingredients grown that go into food, the fibres for material or metals for electronics
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Stage Two
Inputs or components: this is processing of the raw materials to a point where it can be used such as processing raw food, spinning and weaving fibres and making components such as chips in our electronic devices.
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Stage Three:
Product: this means putting together the ingredients to make a cake or a chocolate bar, cutting fabric, sewing it into a garment and adding embellishments or putting together the various electronic components to make a phone of computer.
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Stage Four:
Then it is delivered to the consumer.
Each of these steps can be broken down into a multitude of additional steps where different workers, contractors and businesses undertake different aspects of the production.
Example: The Chocolate Supply Chain ‘From Bean to Bar’
Source: World Cocoa Foundation describes the supply chain of chocolate here and the issues to consider at each of these stages.
Step 1: Growing Cocoa Trees
Step 2: Harvesting and Pod Breaking
Step 3: Fermentation and Drying
Step 4: Sourcing and Marketing
Step 5: Packing and Shipment
Step 6: Processing: Roasting and grinding
Step 7: Manufacturing and Distribution
Step 8: Retail
And that’s just for one product!
