A physical supply chain (PSC) describes the sequence of events that occurs between the seller and the buyer during the supply chain process. A Physical Supply Chain also involves three key components: Physical products, process resources, and process information. A Physical Supply Chain ( PSC ) is a dynamic process using physical products, process resources and information to move a product or service into a buyers hands. There are three primary phases involved in a PSC : Production, sourcing and final goods transportation.
A Physical Supply Chain begins with the production process which includes planning and development, manufacturing and tooling, gathering and material handling, production, packaging and delivery. A successful Physical Supply Chain effectively utilizes logistics and technology to improve productivity, cut costs and provide quality and safe products and services to the end consumer. In addition, the optimal physical supply chain solution supports long-term service level agreements and flexible pricing structures. A successful PSC requires an integrated whole-life cycle management (WLS), a tightly woven, and controlled process that links customer, vendor, and industry. The result is higher levels of productivity, higher levels of product quality, and better distribution methods.
The next stage in a physical supply chain is sourcing. This stage consists of identifying the appropriate vendors for raw materials, working and manufacturing process outsourcing, production and final goods transportation, and providing the customer with the products that are made on time, according to specifications. In addition to these basic activities, a successful Sourcing Process also involves building strategic alliances, working with multiple vendors, evaluating and revising pricing, and sharing technology and information. The final stage of the physical supply chain is the delivery stage. This stage consists of receiving and transporting the completed products to the customer, and providing quality assurance and service to the end user.
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