The term supply chains are not new. This term or concept has been around since ancient times, but it has recently been focused on due to the technological development that is on the rise, which is reflected in the performance of entities (whether institutions or profit-making or non-profit organizations) in order to perform services or products to a high degree of quality while achieving the desired goal of establishing the institution or organization.
The supply chains, through the integration of the parts of the entities to achieve the main goal of the entity, aim to provide accurate information transparently, enabling those in charge of management to make the right decisions that are in the
interest of the entity and also increase the interconnectedness of the parts of the entity (entity chain) in order to achieve the abundance of materials and cash auditing smoothly and easily.
It includes creating a plan, including forecasting demand, developing production schedules, and identifying potential risks and opportunities.
Includes identifying and selecting suppliers, negotiating contracts, and managing
supplier relationships to ensure reliable, timely supply of materials and services at
a reasonable cost.
The actual production of goods or services, including quality control, process
improvement, and management of production facilities and equipment.
It includes moving goods and services from the point of production to the point of consumption, including logistics, warehousing, and inventory management.
This relates to managing the process of returning defective or unwanted goods, including reverse logistics, product recalls, and warranty claims.
The concept of logistics (transportation – shipping – storage – circulation), as it is one of the basic pillars of supply and supply chains, because this part is responsible for the circulation and movement of materials and products to and from the entity in the signatures that serve the plan and production, which is reflected in meeting the requirements. Customer needs in a timely manner for both parties, which leads to achieving cash flows forth entity.
The importance of supply chain management has become very apparent in light of the current global crises, and the very rapid technological progress has emphasized the necessity of working with this system so that work can be performed with high proficiency and speed in meeting demand. An example of this is what happened in 2020 at the time of the outbreak of the Corona virus worldwide and the great efforts that accompanied it, whether in controlling the disease with medicines or vaccines. The distribution of medicines and vaccines required the combined efforts of all elements of the supply chains so that the largest number of treatments and vaccines could be distributed across countries and the world in the shortest possible time.