The supply chain consists of three sectors:
o Primary sector(provides raw materials)
o Secondary sector(using raw materials for the manufacturing or construction of products) o Tertiary sector-service sector-(provides service for the customer)
Normally we expect tertiary sector to work as retails but there could be exceptions sometimes like when the primary sector works as the retailers. This kind of occasion could be when a customer wants to buy a raw material without manufacturing or construction from the seller. The supplier sells the raw material to the customer and this makes the supplier also the retailer because in this case there is no need for a market or a wholesaler. To give an example when a customer buys a vegetable from a farm then the farmer will be the supplier and the retailer because farmer would directly sell the vegetable to the customer without manufacturing or packaging. 2. Give three examples of how Kellogg’s demonstrates good supply chain management. How can Kellogg’s make improvements both for its business and for the environment? I. To lower the overheads and unit costs Kellogg’s started a system called The Lean Production. The Lean Production is an inventory system which enables the streamlining of processes and elimination of the waste. Kellogg’s also tries to find ways to reduce waste by working on its production methods. II. To be more efficient at warehousing and to improve its distribution Kellogg’s moved its storage depot from Warrington to Trafford Park which is one mile away from their production base. This also reduced the energy and cost. III. Kellogg’s use the right marketing mix which formed by the right product (which covers the wants of the customers) at the best place and time. Kellogg’s can improve itself by using recyclable material for packaging to...