Customer, The supply chain begins with the customers and their need for a particular product. The customer contacts the Sales Department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. The sales order includes specific requirements that have to be fulfilled by the production facility., Planning, The requirements activated by customer‘s sales order are combined with other orders. The Planning Department creates a production plan to make the products to complete the customer‘s orders. To manufacture the products the company has to purchase some raw materials., Purchasing, The Purchasing Department receives a list of raw materials and services required by the Production Department to fulfil the customer‘s orders. The Purchasing Department sends purchase orders to selected suppliers asking for the necessary raw materials to be delivered to manufacturing site., Inventory, The raw materials are received from the suppliers; then they are checked for quality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the delivered items., Production, The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. The items are tested and then they are stored in the warehouse prior to delivery to the customer., Transportation, The Shipping Department determines the most efficient method to ship the product to the customer so that they are delivered on time. When the goods are received by the customer. The company will send an invoice for the delivered product..

Supply Chain Elements

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