A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.
1.2.Types of Supply Chains
• Concentration supply chains
Concentration supply chains tend to have few customers but a lot of suppliers. For example, a producer who only produces supermarket brands, or an excise warehouse for a large retail supplier where the occupier is the owner, but the goods are released from duty suspension to specific outlets when required.
• Batch manufacture supply chains
Batch manufacture supply chains have the manufacturer at the hub of the chain and in a similar way to the concentration chain may have many suppliers, but unlike the concentration supply chain has many customers. Here communication will be along normal order and receipt methods, regular customers will usually have specific accounts set up with the supplier.
• Retail distribution supply chains
Retail and distribution alcoholic goods supply chains are made up of businesses buying and selling excise goods after they leave a UK manufacturer or are imported to the UK. This category covers the majority of excise supply chains, and is considered the highest risk supply chain.
The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor is called distribution channel. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers....