In everyday life, we rarely think about how the product we just bought ended up on the store shelf. And yet, behind every item there is a complex process – the so-called supply chain. What does the supply chain look like in practice? Let’s check it out step by step.

Basic elements of the supply chain

First, it is important to understand what a supply chain is. It is the entire journey that a product takes – from the sourcing of raw materials, through production, to sale to the end customer. Each stage has its own “players”: suppliers, manufacturers, warehouses, transport companies, distributors, and stores. Here are 5 elements of supply chain:

• Raw material supplier – e.g., a steel mill that supplies steel.
• Manufacturer – a plant that processes steel into finished parts.
• Warehouse – a place where goods are stored.
• Distributor – organizes transport and delivers products to customers.
• End customer – buys the finished product.

Each of these elements plays an important role, and neglecting one link can cause serious problems.

Product path – from raw material to finished product

Take, for example, Prasmet – a manufacturer of precision small components for the automotive and electrical engineering industries. An example supply chain begins with the purchase of raw materials, such as sheet metal or steel rods. The raw material is then sent to the production plant, where it is processed (e.g., cutting, stamping, turning). The finished component undergoes quality control in the laboratory, is packaged, and transported to the warehouse. It is then sent to the customer, e.g., a car manufacturer or an electrical engineering company.

This supply chain example shows how many stages and people are involved before a screw, connector, or other part reaches the final product.

Key challenges in supply chain management

Supply chain management is not just about logistics and transport. It also involves responding to changes that can arise suddenly: delivery delays, fluctuations in raw material prices, staff shortages, machine breakdowns, or global crises (e.g., a pandemic). Companies must constantly monitor the entire process, anticipate risks, and make quick decisions. Experience, good relationships with partners, and the ability to plan ahead are what count here.

See also: What does a short supply chain mean?

The role of the manufacturer, suppliers, and distributors

Each participant in the chain has their own role and responsibility. Suppliers ensure that the material is of good quality and available on time. The manufacturer, such as Prasmet, is responsible for processing the raw material in accordance with the customer’s requirements. Precision, repeatability, and quality are key here.

Distributors and transport companies ensure that the goods arrive at the right place at the right time. In the world of large-scale production, every hour counts – delays can mean losses amounting to thousands.

Modern technologies supporting supply chain management

Technology is currently changing the face of logistics. ERP and MES systems, IoT sensors, GPS tracking, artificial intelligence – all of these allow companies to monitor production and transport in real time. Prasmet invests, among other things, in automatic measurement systems (such as the Keyence microscope), which ensure the highest quality of the product at every stage.

This enables quick error detection, process optimization, and better planning. A modern supply chain is a combination of people, machines, and data.

How can companies better manage their supply chain?

Today, supply chain management is more than just logistics. It is a strategic activity that can determine the success of a company. What does the supply chain look like in a well-organized company? It is transparent, automated, flexible, and controlled at every stage.

To achieve this level, companies should:

• invest in technology,
• build strong relationships with suppliers,
• ensure quality and control at every stage,
• have a plan B in case of crises.

A well-managed supply chain is not only about efficiency—it is also a competitive advantage that every customer will appreciate.