Sample Essay

Supply Chain is all activities, functions, entities and stages associated, directly or indirectly, with the flow (and transformation) of goods, funds and information, are collectively called Supply Chain. Pearl considers flexibility of its supply chain as a competitive dimension. Supply Chain has a set flow and includes movement of Products, Information, and Funds. Customer is an integral part of the supply chain. It is more accurately termed as “supply network” or “supply web”. The typical stages of a supply chain include: customers, retailers, distributors, manufacturers, suppliers. All stages may not be present; number of intermediaries may vary from channel to channel. For e.g. direct selling and online presence – Dell. There are specifically three kinds of flows in a supply chain and they are as follows:

  • Upstream:
    • Material: Products, Parts.
    • Information: Capacity, Delivery Schedules.
    • Finance: Invoices, Pricing, Credit Terms.


  • Internal:
    • Material: Raw Material to Finished Goods.
    • Information: Production Plans, Labor Scheduling, etc.


  • Downstream:
    • Material: Returns; Repairs; After-Sales Services.
    • Information: Customer Orders, Point-of-Sale Data.
    • Finance: Payments.

Pearlpays special attention to its supply chain since its complex and critical to the success of their business. On time delivery is one of their competitive dimensions and performance parameters so supply chain plays an essential part in their business and most importantly its warehousing services and advanced logistics which are backed by an effective supply chain.

An effective supply chain implements all of its horizons for confirmation of the effective inculcation of the supply chain into the operations of the business. There are three segmentations and they are as follows but each one is important to be implemented for having a successful supply chain:

Internal Supply Chain:

  • Includes internal functions like: Product development, Manufacturing, Marketing, Operations, Distribution, Finance, Customer service, etc.

Organizational Supply Chain:

  • Includes Internal Supply Chain, and
  • Immediate Suppliers and Immediate Customers.

Extended Supply Chain:

  • Supply Chains of the entire network of companies that work together to design, produce, deliver, and service products.

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