Supply Chain
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Supply Chain
A supply chain is the process of getting a product form the producer/manufacturer to the most convenient point of sale.
Of the different types of distribution methods available, I will be using the "Agent/Broker Channel" method. The standard format for the channel is:
To illustrate how the Agent/Broker channel functions, I will be using the example of how wheat becomes flour, then from flour into bread and then to the customer.
I have included the following diagram for you to understand how the concepts are related.
The producer/manufacturer is the person or company that uses raw materials to create the desired product or part thereof.
A farmer is a producer of raw materials in that he first plants the wheat crop and tends it before it is harvested. The wheat is the raw material.
The wheat is then sold to a CO-OP which is an agent. An agent is a person that provides an important service to producers, wholesalers or retailers. The service that the CO-OP provides is buying wheat from the farmer and selling it to the mills at a certain cost...