Supplying is the procurement of a required product on the right time, right form, with an accurate number and appropriate cost. In order to produce the procured product from the supplier, the procurement should also procure its own raw materials. By this means, supply chain is formed that reaches the first material. Supply chain is an integrity including all the process’ actors; suppliers, manufacturers, distributors, retailer, logistics starting from a product’s first material, reaching to consumer and until recycling process.
In all the supply chain process, product/ equipment, data and money flow is being realized. Each of these flows effect the performance of all companies in the chain. As the mentioned flows get slower, the costs start to rise. As the equipment flow slows down and or even when it stops the stock costs and lost sales costs increase, as the data information slows down, the costs due to uncertainty or variables and as the money flow slows down the financial costs increase. All the delays and retards have a negative impact on chain. In this frame, within the chain’s elasticity and agility are important for the notion of cooperation chain member intercompany.
Kümeler Için Tedarik Zinciri Yönetimi Kılavuzu. Ankara: Ekonomi Bakanlığı, İhracat Genel Müdürlüğü, 2013.