what is a supply chain 
a supply chain is a network of individuals and companies that are involved in creating a product and delivering it to the consumer links on the chain begin with the producers of the raw materials and they end when the van delivers the finished product to the user supply chain management is a crucial process because an optimized supply chain results in lower costs and a more efficient production cycle companies seek to improve their supply chains so they can reduce their costs and remain competitive investopedia michela buttignolunderstanding a supply chaina supply chain includes every step that s involved in getting a finished product or service to the customer the steps may include sourcing raw materials moving them to production then transporting the finished products to a distribution center or retail store where they can be delivered to consumers the entities involved in the supply chain include producers vendors warehouses transportation companies distribution centers and retailers the supply chain begins operating when a business receives an order from a customer its essential functions include product development marketing operations distribution networks finance and customer service it can lower a company s overall costs and boost its profitability when supply chain management is effective it can affect the rest of the chain and can be costly if one link breaks 