Links In Supply Chain
Links in supply chain
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A supply chain involves all the parties working together both directly and indirectly in order to satisfy the consumer’s expectations. The process of chain supply does not only include manufacturers and suppliers; it also involves other parties right from the raw material source, transporters, warehouses, retailers and customers. The current business environments within which corporates operate is highly unpredictable; therefore, organizations have been compelled to employ various stratagems to safeguard their existence in the ever competitive product market. The unrelenting competition that has taken over the marketplace and the introduction of new products with limited life span as well as very high customer expectation has become a constant challenge to organizations, therefore, limiting options to concentrating all their efforts in supply chains. This paper seeks to identify the links in the chain supply as well as explain their purpose within the business system and the value of each of the chains.
Raw Material extraction
Raw material is the most important element in any manufacturing industry. Some industries take the responsibility of extracting their raw materials while some enter into contracts with a supplier. The supplier has a duty of extraction and ferries the raw materials to the manufacturing plant. When a company enters into an accord with another organization with the objective of supply of raw materials, the cost is relatively higher than when the manufacturing firm by itself takes the initiative of extracting the raw materials for themselves. In order to produce the right and the anticipated products by the consumer, the raw materials must be of the required quality.
Manufacturer
The manufacturer is the backbone of any business; it is a department that carries with it all the responsibilities of ensuring the creation of a perfect end product. It does the entire planning of the product mix and
Name:
Course:
Tutor:
Date:
A supply chain involves all the parties working together both directly and indirectly in order to satisfy the consumer’s expectations. The process of chain supply does not only include manufacturers and suppliers; it also involves other parties right from the raw material source, transporters, warehouses, retailers and customers. The current business environments within which corporates operate is highly unpredictable; therefore, organizations have been compelled to employ various stratagems to safeguard their existence in the ever competitive product market. The unrelenting competition that has taken over the marketplace and the introduction of new products with limited life span as well as very high customer expectation has become a constant challenge to organizations, therefore, limiting options to concentrating all their efforts in supply chains. This paper seeks to identify the links in the chain supply as well as explain their purpose within the business system and the value of each of the chains.
Raw Material extraction
Raw material is the most important element in any manufacturing industry. Some industries take the responsibility of extracting their raw materials while some enter into contracts with a supplier. The supplier has a duty of extraction and ferries the raw materials to the manufacturing plant. When a company enters into an accord with another organization with the objective of supply of raw materials, the cost is relatively higher than when the manufacturing firm by itself takes the initiative of extracting the raw materials for themselves. In order to produce the right and the anticipated products by the consumer, the raw materials must be of the required quality.
Manufacturer
The manufacturer is the backbone of any business; it is a department that carries with it all the responsibilities of ensuring the creation of a perfect end product. It does the entire planning of the product mix and
References: Li L., 2007. Supply Chain Management: Concepts, Techniques and practices: The enhancing value through collaboration. London: World Scientific Publishing Co.