Friday, 5 March 2010
Supply Chaining
Suppy chaining is defined as "The network of retailers, distrubutors, transporters storage facilities and suppliers that participate in the sale, delivery, and production of a particular product". This basically is using a middle man as an advantage, while the middleman makes a huge process by proving their services of transportation, advertising and people to just generally care for the product after it has left the factory. The biggest example of a supply chain is Wal-Mart. Have you ever seen a walmart branded cleaning spray, or a Wal-Mart brand ice cream? The answer is probobally no, because Wal-Mart does not produce their own products. All they do is act as a middleman, an aid to the big corportations in the sale and advertisement of their products. It takes a load off the bacs of the big companies, only having to worry about a part of the advertisement, and does not even have to worry about its products getting sold. These supply chains only buy the product in wholesale, and sell it induvidually. This makes the world "Flat"... but in what way? This is because it brings the world closer together, having all of these foreign products sold in the Unites States. These supply-chainers do not produce any products, another thing making the globalization work as an assembly line around the globe that exchanges everything, including the products made in Chinese facories and the cattle raised in Northern Brazil.
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I think the idea of supply chaining is really interesting. Since both companies prosper from the idea of supply chaining and yet the consumer can get goods at a cheaper price. I like the fact that you mentioned the world is closer together. We take for granted that we have easy access because of places like Walmart to products made all over the place.
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