Question

Explain the role of 3 participants of the supply chain (any three)

Answer 1

It shall be noted that the simplified model of supply chain indicates three main participants - company, suppliers and customers of the company.

A company is generally a producer. Suppliers are generally wholesaler or retailers and Customers are the final buyers of the product, which are generally the households and businesses that does investments or incur intermediate expenditure.

Producer - They manufacture the product. The product can be finished or un-finished goods. Producers may be into mining and quarrying , oil & gas, livestock raising, marine produce or processed goods manufacturing.

Suppliers - There are two categories - Wholesaler and Retailer. Wholesaler maintains bulk inventory of good produced by producers and distribute it across different regions of the country. They sell to business firms directly or to retailers. They are into product promotion , inventory management, warehousing and customer post sales service support business. Retailers are directly in touch with household customers.  They maintain small stock of inventories and closely track demand & preferences of the customers.

Customers - They make purchases. It can be any business firm or household. They purchase goods for final consumption or investment purpose or for further processing of the goods into other forms for selling purpose.