Global Supply Chain Definition

In business, a supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer.

In a global supply chain, the suppliers, manufacturers, distributors, and customers are located in different countries around the world. A typical global supply chain might involve suppliers in India, manufacturers in China, distributors in Europe, and customers in the United States.

The globalization of business has led to the development of more complex global supply chains. In addition to the traditional suppliers, manufacturers, distributors, and customers, there are now often multiple tiers of each type of organization involved in the supply chain. For example, there might be several levels of suppliers providing raw materials to manufacturers who then produce component parts that are assembled by another manufacturer before being shipped to distributors who make them available to retail stores who finally sell them to consumers.