Supply network Did You Mean Supply?

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A supply network is a pattern of temporal and spatial processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacture and delivery of products. It comprises the general state of business affairs in which all kinds of material (work-in-process material as well as finished products) are transformed and moved between various value-add points to maximize the value added for customers.

A supply chain is a special instance of a supply network in which raw materials, intermediate materials and finished goods are procured exclusively as products through a chain of processes that supply one another.

In the semiconductors industry, for example, work-in-process moves from fabrication to assembly, and then to the test house. The term "supply network" refers to the high-tech phenomenon of contract manufacturing where original equipment manufacturers (OEMs) don't touch the product. Instead, the OEMs coordinate with contract manufacturers and component suppliers who shipped components to OEMs. This business practice requires the OEMs to stay in touch with multiple parties or "network" at once.

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