What Is a Supply Chain?

What Is a Supply Chain

If you hear the term “supply chain,” this refers to the whole process of obtaining raw materials, turning them into a product, and then packaging and shipping them to, perhaps a distribution point, and then finally to the end, which may be a retail store that sells the product to an end user. Every part of that process is considered part of the supply chain.

What Is the Importance of the Supply Chain?

The supply chain is part of the manufacturing cycle. How fast and efficiently the supply chain operates determines in a large part the timing of the manufacturing cycle and how and when manufacturers make money. Similarly, any breakdowns in the supply chain affect people everywhere and the pricing of products because of supply and demand.

Where Does Transportation and Logistics Fit in?

Transportation and Logistics is an essential part of the supply chain. As you can see in the attached image, transportation and logistics is how products move toward the end user.

How Has COVID-19 Affected the Supply Chain

There are many ways that COVID-19 has adversely affected the supply chain. Because of individual illness and restrictions on movement some parts of the supply chain are understaffed or working different, less efficient hours. Some types of shipping have slowed. National lockdowns have slowed the movement of materials in all parts of the supply chain. Even letter mail is moving more slowly than usual.

An emergency need for specific products has caused some manufacturers or suppliers to change what they produce or have available. People who buy products are buying them differently than they used to or buying less. These are just a few of the issues, but they all adversely affect both the supply chain, product availability and pricing. What affects the global supply chain also affects the global economy.

Pacific Coast Distribution works hard to keep its shipping and logistics services working at optimum efficiency despite the pandemic. Call us at (877) 999-8489 if you need help moving your products quickly and efficiently.

Pacific Coast Distribution, LTD, is a family-owned transportation and logistics company, based in Langley, British Columbia, with 20 years of experience and a fleet of 50 trucks and a 60,000-square-foot warehouse.

If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at (877) 999-8489.

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