The products of the supply chain are everywhere. You wear them, you eat them, you see them in stores. These products provide extrinsic value to people across the globe. Many of these products would be impossible without the supply chain.
You might be thinking, I’ve heard of the supply chain, but I don’t know much about it. That’s okay. The supply chain is the complete system of organizations, activities, resources, and information involved from taking raw materials and delivering them as completed products to customers.
The Flow of the Supply Chain
If the supply chain feels too broad, consider an illustrative example you might be familiar with: cheese.
Raw Material Sourcing
The first link of the chain begins at a dairy farm. Cows are milked, and the milk is tested for quality and stored. Because milk is a perishable commodity, the dairy farm sells it to processing plants or cooperatives that specialize in refining it into consumer products.
Inbound Logistics
The second link in the chain is the process of transporting milk from the dairy farm to a cheese-processing plant. This transportation process is delicate because carriers must preserve the milk, prevent bacterial growth, and prevent the loss of valuable material.
Processing & Manufacturing
The third link in the chain is the process of transforming milk into cheese at the cheese-processing plant. They pasteurize the milk, add cultured bacteria creating cheese curds, separate the curds from the liquid, press the cheese into molds, and store the cheese in a climate-controlled aging room. Depending on the quality and type of cheese, it can take from a few weeks to many years for it to age. Once matured, the cheese is cut and wrapped into its final retail packaging.
Outbound Logistics
The fourth link of the chain is the process of transporting and distributing the cheese product to distribution centers. Like milk, the transporters delicately track temperatures and ensure the process is clean and safe. The distribution centers then organize the cheese and prepare it for the final delivery.
Final Delivery & Retail
The fifth link of the chain is the delivery of the cheese to grocery stores, restaurants, or directly to customers. Employees place the cheese in a refrigerated display or storage area, where customers can select their cheese, purchase it, and take it home.
Working in Supply Chain Management
Now that you understand how the supply chain works from beginning to end, you can learn how to track the moving parts. That's the purpose of the supply chain management degree. You learn the ins and outs of accounting, finance, and business to lead large-scale operations. You gain expertise and experience in the following areas:
- Logistics: Planning, tracking, and executing the forward and reverse flow of goods, services, and information with a focus on efficiency.
- Transportation: Selecting shipping methods, carriers, and routes while complying with global regulations.
- Operations & Sourcing: Managing manufacturing capacity, negotiating vendor contracts, and balancing inventory levels to match market demand.
The Big Picture
Getting a degree in supply chain management is mastering how to use small pieces to build a bigger picture. If you are interested in working as a logistics manager, acquiring valuable skills, and learning more about how the world works, supply chain management is right for you.
Sources
BYU–Idaho — Accounting (B.S.)
BYU–Idaho Academic Catalog — Accounting Program
Wikipedia — Bloomberg Terminal
Bloomberg Professional Services — Bloomberg Terminal
CFA Institute — CFA Program Curriculum
BYU–Idaho — Department of Accounting
BYU–Idaho — Department of Economics
BYU–Idaho — Department of Finance
BYU–Idaho — Economics Student Resources
BYU–Idaho — Financial Economics (B.S.)
Wikipedia — Financial Economics
BYU–Idaho — Grad Planner
Investopedia — What Is a Bloomberg Terminal? Features, Costs & Competitors
BYU–Idaho Learning and Teaching — Bloomberg: A Teaching Innovation
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BYU–Idaho — Finance Student Resources