Here is an exmaple of supply chain diagram, from which you can see there are 6 parts in the process, including the raw material, suppliers, distribution, factory, retail, and customers. A supply chain, the management of the flow of goods and services, it involves a series of steps involved to get a product or service to the customer. Basically it is network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.