2. What is Supply Chain?
“A supply chain is network of facilities and distribution
options that perform the function of procurement of
material, transformation of these materials into intermediate
and finished products, and distribution of these finished
products to customers.”
4. Direct suppliers to OEMs are called Tier 1 suppliers. Let’s assume that “Parts manufacturer B”
produces screws and delivers products to “Component manufacturer” and directly to an OEM.
This means that “Parts manufacturer B” works both at the Tier 3 and at the Tier 1 level. Tier 3
suppliers could be called subcontractors to the Tier 2 level. Whenever such a subcontractor also
delivers directly to an OEM, it is regarded as a Tier 1 company for such business transactions.
5. Metrics related to supplier compliance
(shows only for understanding purpose)
6. Inbound Logistics:
Takes delivery of Raw
materials from Supplier
and convey to the
Manufacturer
Diagram shows metrics presented here Only for understanding purpose