What are the objectives of a typical supply chain?



There are different parties involved in a Supply Chain such as manufacturer,marketer,suppliers,transporters,warehouses , retailers,customers etc. They are directly or indirectly involved in fulfillment of  the customer requirement. The main objective is to maximize overall value generated. They continually look for sources of revenue and cost.


 Supply Chain profit:

The objective of every Supply Chain is to maximize the overall value generated. Value is the difference between   what the final product is worth to the customer and the costs the supply chain incurs in filling the customer’s request. Value is strongly correlated with supply chain profitability (also known as supply chain surplus). Supply chain profitability is the total profit to be shared across all stages of the supply chain.

 Supply Chain Cost:

Supply chain success should be measured by total supply chain profitability, not profits at an individual stage. Sources of supply chain revenue is the customer.  Sources of supply chain cost are flows of information, products, or funds between stages of the supply chain. Supply chain management is the management of flows between and among supply chain stages to maximize total supply chain profitability.





Balancing between effectiveness and responsiveness ,building   greener supply chain, are among the long term  and short term goals of a Supply Chain.

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