Supply Chain Definitions
The development and functioning of supply chains have become important subjects for academician with a resultant increase of definitions and phrases. Definitions that have been investigated for the intention of this paper are as follows:
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As reported by Beamon B. (1998), a supply chain is “a structured producing proceeding wherein raw materials are transformed into finished goods, then delivered to end customers”;
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Tecc.com.au (2002) defines supply chain as “a chain starting with raw materials and finishing with the sale of the finished good”;
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Bridgefield Company (2006) defines supply chain as “a connected set of resources and processes that starts with the raw materials sourcing and expands through the delivery of finished goods to the end consumer”;
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Pienaar Walter (2009b) defines supply chain as “a general depiction of the process integration involving organizations to transform raw materials into finished goods and to transport them to the end-user.”
The above definitions centralize on the core determinants of an effective supply chain. They connote the need for a provenance and a destination within which goods flow and accept the approach that Supply Chains start with resources, combine a number of value adding activities and finish with the delivery of finished goods to consumers.
The following definitions are more complicated. They include an extended view of a supply chain and integrate extra activities in the operation of the supply chain:
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Arthur D. Little (1999) defines supply chain as “the interconnected or joined flows of goods from origin to final destination, also the information flows that are linked with it”;
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According to Chow and Heaver (1995), supply chain is the group of manufacturers, suppliers, distributors, retailers and transportation, information and other logistics management service providers that are focused in supplying goods to consumers. supply chain comprises both the external and internal associates for the corporate;
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Ayers (2001) defines Supply Chain as life cycle processes involving physical goods, information, and finance flows whose objective is to satiate consumer requisites with goods and services from diverse, connected suppliers;
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Mentzer, W. DeWitt, Keebler, Min, Nix and Smith(2001) defines supply chain as a set of firms promptly involved in the supply and distribution flows of goods, services, finances, and information from an origin to a destination.
The difference in approach between both definitions categories and the all-embracing descriptions combined in the latter render it very difficult to define a supply chain in practice if each of the definitions is to apply. Various systems of distribution organized to work through transport connections and nodes and recognized as supply chains in industry do not concede any of these definitions.
For the objective of this study, it is consented that the role supply chain is to add value to a product by transporting it from one location to another.