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 :: Aspects of Supply Chains

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The supply chains normally are defined as the set of companies who do business with products, information and financial resources between themself along the time.

Although theoretically to start in the initial supplier (next the land) and to finish in the retail (next to the final consumer), the supply chains have its management limited, in the smashing majority of the times, to the link supplier-customer, and in a lesser part of the times, to the supplying link of level 2-supplier 1-customer.

Four economic and technological aspects characterize the different companies of supply chains. These economic and technological aspects influence, in the biggest part of the time, the definition of the agenda of priorities of each company. They are:

  • The structure of fixed and changeable costs of the operations that compose each company.
  • The time of reply of the operations that compose each company.
  • The incidental costs accumulated to the company end.
  • The edge of contribution gotten for each company of the chain when negotiating with the following company. Companies located next the land tend comparativily to possess operations characterized for a bigger ratio of fixed costs to the changeable costs. Their operations of production and intensive distribution are predominantly of continuous flow and in capital.

     

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