By Retail Brew Staff
less than 3 min read
Definition:
A supply chain is the system of sourcing raw materials, manufacturing goods, storing them, shipping them, and delivering them to retailers or consumers. Suppliers pass goods to manufacturers, which hand them off to warehouses, which pass them to shippers, and so on. In retail, a smooth supply chain means shelves stay stocked and customers stay happy. Modern supply chains rely heavily on tech: inventory management software, AI-driven forecasting, and real-time tracking to keep things moving.
Origins of supply chain
The history of the retail supply chain dates back to ancient trade routes like the Silk Road, where merchants transported goods over great distances. With the Industrial Revolution, mass production transformed supply chains, introducing factories, railroads, and mechanized shipping. In the 20th century, global trade and container shipping revolutionized distribution. Technology further reshaped the retail supply chain with the rise of barcoding, computerized inventory systems, and enterprise resource planning (ERP). The 21st century brought e-commerce and omnichannel retailing, demanding faster, more flexible supply chains. Automation, robotics, and real-time tracking set new standards, and supply chains became global, complex, and heavily reliant on data and technology. Recent events like the Covid-19 pandemic highlighted vulnerabilities, prompting investments in resilience, sustainability, and digital transformation.
Supply chain in context
“Warehouses are sort of the unappreciated middlemen of retail supply chain management, serving their part within immense, sometimes anonymous, structures.”
“Retailers, just like their customers, sometimes have to shop around to get the products they need to line their shelves. This process is called sourcing, and it’s an essential part of supply chain management.”
