Supply Chain Relationships Definition

A supply chain is a network of organizations that are involved in the process of transforming raw materials into finished goods. The term ‘supply chain’ is used to describe the entire process, from the sourcing of raw materials to the delivery of the finished product to the end customer.

There are three main types of relationships within a supply chain: supplier-manufacturer, manufacturer-retailer, and retailer-customer. The supplier-manufacturer relationship is between the organization that supplies the raw materials and the organization that transforms those raw materials into finished goods. The manufacturer-retailer relationship is between the organization that produces the finished goods and the organization that sells those goods to customers. The retailer-customer relationship is between the organization that sells the finished goods and the customers who purchase those goods.

The term ‘supply chain relationships’ can also refer to the relationships between different organizations within a supply chain. For example, a supplier may have a long-term contract with a manufacturer, or a retailer may have a preferred relationship with a particular manufacturer. These types of relationships can provide benefits such as stability and predictability for both parties involved.