Topic > Essay on Supply Chain - 892

What is a supply chain? The supply chain is a process that includes activities such as the movement of goods, services, information and money from producer to consumer. Increasing competition and the wide variety of products being introduced have forced companies to examine their supply chain processes. This is a byproduct of the era of globalization. The supply chain consists of processes such as sourcing raw materials from suppliers which are then sent to manufacturing facilities to be processed. The goods generated after processing can be finished or semi-finished. These goods are then sent to the warehouse for intermediate storage and then sent to distributors, retailers and customers. A supply chain can also be called a "value chain" since entities add value to the product at each stage of the supply chain, thus increasing the attractiveness in the eyes of end customers leading to a purchase,The supply chain it is not only a flow of goods and services but also includes the flow of information and money. Flow is a two-way flow that includes the flow of information from supplier to consumer and from consumer to supplier in the form of feedback. This flow of information and money should be taken seriously because, at the end of the day, customer satisfaction is the key element for any business to be profitable. A typical supply chain may involve several stages. These stages of the supply chain include: • Raw material suppliers • Manufacturers • Wholesalers/distributors • Retailers • End consumers The traditional view of supply chain management focuses only on delivering goods to the customer at the lowest possible price, but Supply chain definitions have changed over time. The new supply… middle of the paper… the customer is part of the delivery mechanism. Free on board: This is the factory price strategy where the buyer bears the shipping costs. Transportation Absorption pricing: is the strategy in which parts of transportation costs are paid in line with competitors. Uniform Delivery Price: This is the strategy where a standard price is set for all shipments regardless of location. Price per area. – It is the pricing strategy where different prices are charged for different prices for different zones i.e. geographical locations.5. Authorization to return goods: This process is commonly referred to as "Returns". It is the authorization system responsible for returning defective goods and excess goods from the customer. It is also a scheme to support customers who may experience problems with the delivered products.