What does supply chain mean?
A system or network of businesses that are used to move a product from its manufacturer to the customer. In ecommerce, this supply chain will usually be made up of the manufacturer and distributor of a product, as well as the retailers who offer the product for sale online.
It is vitally important that the supply chain of your business runs smoothly in order to provide the customer with a reliable and quick service. The supply chain will start in the factory where the product is being manufactured, and will not end until the product arrives safely with the customer. So, the supply chain consists of every business that comes in contact with the product, including assemblers, retailers, and the shipping company that delivers the product.
Any efficient supply chain must have reliable suppliers as a key component. This not only means that they deliver on time, but that they also deliver a quality product that meets the needs of the final customer.
Supply chain efficiencies continue to improve, and this improvement has helped keep prices for final products lower as the increased efficiencies also lead to decreased costs.