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MANUFACTURER
Producers or manufacturers are organizations that make a product. This includes
companies that are producers of raw materials and companies that are producers of
finished goods. Producers of raw materials are organizations that mine for minerals,
drill for oil and gas, and cut timber. It also includes organizations that farm the land,
raise animals, or catch seafood. Producers of finished goods use the raw materials
and sub-assemblies made by other producers to create their products.
DISTRIBUTORS
Distributors are companies that take inventory in bulk from producers and deliver a
bundle of related product lines to customers. Distributors are also known as
wholesalers. They typically sell to other businesses and they sell products in larger
quantities that an individual consumer would usually buy. Distributors buffer the
producers from fluctuations in product demand by stocking inventory and doing much
of the sales work to find and service customers.
CUSTOMERS
Customers or consumers are any organization that purchase and use a product. A
customer organization may be an organization that purchases a product in order to
incorporate it into another product that they in turn sell to other customers. Or a
customer may be the final end user of a product who buys the product in order to
consume it.
One author defines the supply chain as a ìnetwork of organizations that are
involved, through upstream and downstream linkages, in the different
processes and activities that produce value in the form of products and
services in the hands of the ultimate customerî (Christopher 1998, p. 15).
Supply
Distribution
o Columbia Distributing
o MIAMI EXPORT PURCHASING CORPORATION
o Trichem Group
4. Lea el siguiente texto y en los ítems que encuentra más adelante elija
las respuestas correctas para cada pregunta, de acuerdo a las
opciones dadas:
__ Good products.
__ Better services.
__ Toys.
__ Apples.
__ Providers’ costs.
__ Managers’ costs.
_X_ Accept that partners should reduce costs in the supply chain.
1
Anderson, D. Britt, F. y Favre, D. (s.f.). The 7 principles of supply chain management.
Consultado el 20 de octubre de 2016, en http://www.scmr.com
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EMPRESA:
Cueros Gomez
Step 1: The CPG company is the Customer who receives raw materials from
the producers.
Step 2: The CPG company becomes the Supplier to the Wholesaler or Retail
Headquarters Customer.
Step 3: The Retail Stores become the Customer once products are shipped
from the Distributor or Warehouse Supplier.
Step 4: The Retail Store becomes the Supplier to the Consumer (the
Customer) purchasing the product.
Each of the Suppliers and Customers at each point in the process are
concerned about meeting supply demands, while controlling inventory levels.
Any issues associated with meeting supply demands or running out of inventory
have an impact on the total supply chain.
There are 3 flows in supply chain, only one of which are the products.
INFORMATION FLOWS
There are many different components that influence or are part of the
information flow for Retailers, including general conditions of trade, product
specifications, forecasting, inventory levels, order placement and order tracking.
Below are three information flow examples:
These are the Suppliers’ or Retailers’ rules and principles as they relate to
business with their trading partners. Note that Retailers and Suppliers may have
conflicting GCT and these conflicts need to be addressed and resolved.
o Credit Terms
o Minimum Order Quantities
o Delivery Methods
o Discounts
o Return Policies
PRODUCT FLOWS
FINANCIAL FLOWS
Financial flow relates to product pricing and invoicing, credit terms and early
payment discounts and accounts receivable. Effective management of accounts
receivable increases cash flow for the business, freeing up funds for operations,
marketing, inventory and capital investments for both Suppliers and Retailers.
The larger Retailers in the world run some of the largest and most sophisticated
logistics operations, but even small Retailers strive to keep logistics costs low in
order to increase operating margins. As part of their logistic strategies, Retailers
may:
o operate their own trucking fleets to deliver goods from their warehouse(s)
to their stores;
o own distribution centres as means of reducing transportation costs,
increasing service levels and reducing the number of deliveries to its
stores; and
o focus their efforts to increase the sustainability of their entire operations.
In summary, the supply chain is affected by many decisions and choices across
different business units, departments and teams. It is important for your multi-
functional teams to understand all aspects of the entire product supply chain,
and consider how recommendations and changes at their desks will affect the
supply chain both for them and their customers.
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