Certified in Logistics, Transportation and Distribution (CLTD) Practice Test

The term used to describe a physical supply process is often referred to as the process value chain. This concept encapsulates the series of activities and processes involved in sourcing, production, and delivery of products. It emphasizes how value is added at each step, from the procurement of raw materials to the final product reaching the customer.

Understanding the process value chain is crucial for evaluating efficiency and identifying areas for cost reduction within logistics. Each activity in the value chain plays a role in enhancing overall performance and ensuring that the end product meets customer expectations.

While terms like "the value stream," "the logistics chain," and "the distribution network" are related and pertain to different aspects of supply chain management, they do not specifically define a physical supply process in the same way. The value stream focuses more on the flow of materials and information, the logistics chain emphasizes transportation and storage activities, and the distribution network deals primarily with the channels through which products are delivered to the end users. The process value chain effectively encompasses the entirety of how value is created through physical supply processes.