Different Stages of Supply Chain with Example

Different Stages of Supply Chain with Example

Swagatam September 08, 2021
  • Let's think about a consumer buying detergent from a retail store. The supply network or supply chain begins with the consumer's requirement for detergent.
  • The retail store stocks its racks using inventory supplied from a warehouse or a distribution center using transports provided by a 3PL.
  • The warehouse or distribution center is replenished by the manufacturer receiving raw materials and products from different suppliers, who themselves may have been supplied by supplier's suppliers.

                                       Supply Chain Stages. Source: Supply Chain Management Strategy,... |  Download Scientific Diagram

Fig: Different stages in a detergent supply chain.

  • The retailer provides the product, pricing, and other information to the consumer and in turn receives funds from the consumer.
  • The warehouse or distribution center receives POS data and restocking orders from the retailer, transfers the replenishment stocks to the store via trucks.
  • The distributor receives funds from the retailer after restocking and provides pricing information and delivery schedules to the retailer.
  • Recycled and packaging materials may be sent back by the retailer.
  •  In this way flow of information, products, and funds occur within the supply chain.