• Production

• Business

This is the starting point of the production process, involving the acquisition of raw materials from nature or suppliers. These raw materials are the basis for manufacturing products.

- Example: Mining minerals

2. Logistics:

After the raw materials are extracted, they need to be moved and stored through the logistics system. This includes using warehouses and a large number of storage facilities to ensure the safety and effective management of raw materials.

3. Manufacture

At this stage, raw materials are transformed into finished products. This involves a series of processing, assembly and quality control steps to ensure that the product meets the design specifications and quality standards.

4. Logistics:

After manufacturing is completed, the finished products need to be moved and stored again through the logistics system. This includes using distribution centers and warehouses to manage the distribution of products.

5. Retail stores and/or consumers:

The products eventually reach retail stores or directly reach consumers. This is the stage of product sales and consumer usage.

6. End use:

This is the end of the production process, when the product is used by consumers and its life cycle is completed.

The entire flowchart demonstrates a circular economic system, in which logistics plays a crucial role in connecting various production stages, ensuring that raw materials, work-in-progress and finished products are available at the right time and place.

Warehousing

Inventory control

Order processing

Transportation

Customer service

This is the final step in the supply chain and can strongly affect customer satisfaction and brand reputation. also a strong logistics system means that products arrive on time, in good condition and at a reasonable cost.

1. Faster delivery to customers

A well-organized supply chain ensures that products reach customers quickly.

2. Reduced operating costs

An efficient supply chain reduces the cost of warehousing, transportation, and handling.

Example: Walmart saved billions of dollars by adopting just-in-time inventory.

3. Improved customer satisfaction

Reliable delivery and product availability are sufficient to satisfy customers.

Negative impacts of supply chain

1. Vulnerability to disruption

Some force majeure factors (such as natural disasters, political issues or epidemics) may cause supply chain disruptions.

For example: COVID-19 has disrupted global shipping and factory production.

2. High installation and maintenance costs

Building a strong supply chain requires significant investment in technology, warehousing and transportation.

3. Complex management

Supply chain not only needs to manage multiple suppliers, but also warehouse matters and freight routes are very complex and need to be carefully checked and coordinated.