Before delving into the job of a logistics manager (also called a “logistician”), it’s helpful to establish what defines a supply chain. The “global supply chain” refers to the complex movement of goods around the planet and consists of a vast network of individual supply chains. In fact, each product sold by each company has its own supply chain.
For example, let’s say a company sells scooters. Then let us suppose that each scooter has four components, and that each of those components is sourced from a different supplier. Those four suppliers make up the supply chain for those scooters.
Supply chains can become more complex than this, however. The four suppliers in this example may need to rely on additional suppliers to provide the raw materials to make those four components. Each supplier of those raw materials is also a member of the scooter’s supply chain.
In short, a supply chain consists of every step in the process of getting the final product to the consumer. This process includes sourcing the raw materials, manufacturing the products, transporting the finished products to a warehouse (distribution center) and finally, transporting the products from the warehouse to the retail store or directly to the customer’s door. From the retailer to the warehouse and the transportation companies to the producers, each part of the supply chain is essential.