The Links In a Supply Chain - An Introduction

The experienced businessman dealing in internationalThe Manufacturer: Companies that process materials
trade is well aware of the importance of the supplyto create goods, everything from cars to clothing to
chain. The name alone clues the novice entrepreneurTV dinners. Many of these business may rely upon
to its meaning - each "link" represents an essentialdifferent raw materials to achieve their goals, thus
business or representative that relies on the othersplitting adding tangent links to their part of the chain.
links to keep trade, sales, and supplies strong. WhenWarehousing and Inventory: Finished goods and
a link goes missing or breaks (i.e. is unable to performstored and kept before they are sold and shipped
to capacity and satisfy the needs of others), allaround the world. Manufacturers may handle their
connected to the chain suffer.own warehousing or arrange with a third party to
To better understand dealing in international business,take care of things.
assuming you have set up profiles on a global tradeVendors: Whether wholesale or retail, vendors are
forum or similar networks, it's necessary to knowimportant in that they are the ones who will take the
exactly who are the links in the chain you'll buildproducts and sell them to customers - large
yourself. It may surprise you to know, too, that youdepartment stores, e-commerce gateways, or
are not always an anchor or end. How you conductsmaller retailers may fall into this category.
business and what you expect to do depends onConsumers: Yes, consumers are considered part of
your position, but know this: one link doesn't out rankthe chain, as the money they spend on items figures
the other. All have their own duties to attend, andinto international trade. The more people buy of one
that is what helps to strengthen global economiesparticular product, the more likely vendors will order
and relations.more, and manufacturers will create.
The Supply Chain: The Major PlayersIn between these major links, you may find others
Browse any supply chain forum and you are likely toinvolved in the process of bringing goods to the
find a number of "links," including:public. Supplemental sales forces, quality control, and
The Supplier of Raw Materials: Companies that supplyother jobs figure into the plan as well. However,
raw ore, iron, timber, coal, and other naturalwithout the top players that provide resources,
resources used in the production of goods. Certainrefine them and sell them, your link to financial
food growers may qualify here as well, if thesuccess with your business is threatened. Research
foodstuff is used to produce different things (i.e. milkcarefully which companies you add to your chain.
for dairy products).