NKWS Guide To Starting a Business-- Operations -- Supply Chain

Supply Chain

What is Supply Chain?

"The supply chain represents the flow of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer." (www.balancedscorecard.biz/Glossary.html)

Understanding your supply chain is important to meet the demand of customers on time every time and with the quality they want. The following simple equation can be remembered when forming the supply chain of your business:

The four "W's" are Who, What, Where, and When. Each of those questions lead to the answer of "How" the customers will receive their product.

• Who:
  • Who sells the supplies you need?
  • Who can transport the supplies and will it be worth the shipping fees?
  • Who are my competitions and what methods of distribution do they use?

• What:
  • What standards will you set to ensure the quality of the product?
  • What companies will you work with to deliver your product?
  • What quantity of product should I order?
  • What formulas or excel files can help me manage the purchasing and inventory?

• Where:
  • Where will you purchase your product?
  • Where do I store my inventory?

• When:
  • When should I reorder my supplies/products?
  • When should I re-price my items?