In business, a supply chain is an organized network of people, actions, processes, resources, and products involved in delivering a product or service to the end user. Supply chain activities include the transformation of raw material, manufactured goods, and parts into a ready-to-use product. There are two main types of supply chains: internal and external.
External activities are those conducted by organizations that do not involve any internal personnel. An example of an external organization is a car manufacturer manufacturing a new car. When selling a car, the manufacturer’s sales force and production crew provide all of the details, including all of the tools and equipment necessary for production. At the same time, the company’s factory technicians maintain the factory, repair any problems that may arise and perform final assembly and testing on the car before it is sold. The company also has a number of sales people who will contact the potential buyers of the car. These sales people are called channel partners. These salespeople are responsible for marketing, advertising, sales training, and sales support.
Internal activities are those conducted by internal personnel. An example of an internal organization is an airline company. The management of the airline company uses internal systems to handle operations, such as scheduling, accounting, purchasing, production, and inventory management. While this is an internal process, the airline company still needs external partners to provide information about products, prices, discounts, promotions, and service offerings. These outside providers of information are called external partners. They use their own internal procedures and resources to provide information about products, services, pricing, promotions, and other pertinent information about products and services.
In addition to these external activities, companies sometimes engage in activities that involve a combination of both internal and external activities. For instance, in the case of automobile manufacturers, both internal and external activities are performed, but the internal activities play a role that makes the information that they provide more relevant to the decision-making process of the company’s decision-makers.
The Indian supply chain model has been proven to be effective in managing a large volume of operations. The concept of India is that a supplier performs tasks on behalf of a company that the company needs done; such tasks include manufacturing, assembly, design, marketing, finance, distribution, supply, and return, etc. The provider performs these tasks in a timely manner. because these tasks require no human involvement. Therefore, companies have been able to reduce the cost of these tasks because there is no need for human supervision or interaction.
In today’s global marketplace, many companies are investing in Indian suppliers to take advantage of the expertise of Indian workers. This is beneficial to companies in several ways. In today’s global marketplace, human interactions are very important because companies need to find the right suppliers at the right time, for the right products at the right price, which requires companies to reduce labor costs.