Categories: Supply Chain

The objective of a supply chain

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">The main purpose of the supply chain is to maximize overall value generated&period; Value is the difference between what the cost supply chain incurs and the worth end product has to the customer&period; Value of the commercial supply chain is strongly correlated with its profitability generally known as supply chain surplus&period; <&sol;p>&NewLine;<p align&equals;"justify">For example&colon;&&num;160&semi; A customer purchase a personal computer from IBM at &dollar;2&comma;000&comma; which indicates the revenue supply chain achieved&period; All the stages incur costs to make sure the efficient transfer of funds&comma; information&comma; storage of the product&comma; transportation to the final consumer etc&period; The difference between the supply chain cost and revenue generated from personal computer represent the supply chain surplus or profitability&period; Supply chain surplus is the total profit shared by all the stages and intermediaries&period; The greater the supply chain surplus the more successful is supply chain&period; Supply chain success is measured by its overall surplus not by the profit at each stage&period;&&num;160&semi; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi;&&num;160&semi; <br &sol;>Sources of the revenue for any supply chain are the customer&period; At Kmart&comma; all cash flows are simply fund exchange except only one positive cash flow when customers purchase grocery or any other product etc&comma; because each stage has different owners&period;&&num;160&semi; Kmart takes portion of funds from customers and share that fund with suppliers&period; Efficient flows of fund&comma; information&comma; and product is a key to supply chain success and maximize supply chain surplus or profitability&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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