Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

The Supply Chain

Through the three functions—marketing, operations, and finance—value for the customer is created. However, firms seldom create this value by themselves. Instead, they rely on a variety of suppliers who provide everything from raw materials to accounting services. These suppliers, when taken together, can be thought of as a supply chain. A supply chain (see Figure 1.2) is a global network of organizations and activities that supply a firm with goods and services.

Supply chain

A global network of organizations and activities that supplies a firm with goods and services.

As our society becomes more technologically oriented, we see increasing specialization. Specialized expert knowledge, instant communication, and cheaper transportation ...