Open-Loop Supply Chain (Traditional/Forward-Loop Supply Chain) Definition

The traditional supply chain is a linear, one-way system in which materials are moved from suppliers to manufacturers to distributors to retailers to consumers. In this system, each step in the chain is an independent entity with its own set of objectives, processes, and resources. There is little coordination or communication between the entities, and each link in the chain focuses on maximizing its own efficiency and profitability.

The forward-loop supply chain is a more collaborative and integrated system in which information flows back up the supply chain from consumers to retailers to distributors to manufacturers. This feedback loop allows companies to better understand consumer preferences and needs, and make more informed decisions about product design, production, and marketing. The result is a more efficient and responsive supply chain that can better meet the needs of consumers.