Before we ask how do supply chains work, what are supply chains? In business terms, a supply chain is a network of all the organization, people, activities, resources, information and technologies involved in supplying a product or service to a customer. These usually entail everything from the delivery of source materials from the supplier to the manufacturer through to eventually the user. So now that we know what a supply chain is, how does it all work?
We’ll discuss this topic as we go further on. To get solutions about supply chains, we can use supply chain solutions Malaysia. Supply chains solutions Malaysia is the best way to work on your supply chains especially if you live in Malaysia.
Firstly, in order to create a product or service to sell to people, we must first pitch an idea to a team of people. These people will be your investors in this product. After pitching your idea of a product or service to this group of investors, they will either approve your idea or reject it. If the investors approve of your idea, they will start investing money into you and your product, and they will be expecting you to create profits from those products so that they can also earn their money back from investing in you and your product. Click here for more related articles.
Secondly, once you have your funds for your project, you can start using these funds to work on hiring people, acquiring resources, research and development, utilizing technologies and more to start developing your product or service. This step usually takes the longest out of all because of all the time spent researching and developing the product. Once this step is done and your product has come out of the prototype stage, we can start to mass produce your product.
Thirdly, mass producing your product will ensure that your product will be in enough supply to meet demand. In order to mass produce, you must have source materials that are delivered from your preferred material supplier. Once these materials are delivered from the supplier, they are then sent to your manufacturer where your product will be mass produced. Once enough product has been mass produced, all of your product will either be delivered directly to your customers and consumers, or they will be shipped to store fronts across the country. These store fronts will be the main place where the rest of your customers will be able to purchase your products.
Once your customers purchase your product and are satisfied with the quality of it, they will then spread the word of your product. This will then allow you to earn more profits from the massive sales of your products. After generating enough profits, you investors will check in in your product’s development. If they see a success, they will be happy to find out that investing money into you and your idea wasn’t a waste and they will be satisfied in earning some profit from your success.
In conclusion, these steps list down all the processes of a general supply chain. You should now be able to understand more clearly and deeply into how a supply chain works.