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.

                                       

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.