In detail Describe the role of the various stakeholders in t

In detail, Describe the role of the various stakeholders in the supply chain management?

How to facilitators, such as financial institutions and government agencies, influence supply chain activities?

Solution

Various stake holders in the supply chain play different roles in the supply chain i.e. either supply material, finances or information or any combination of the three. Each stakeholders provides a forward flow and receives a backward flow (for example a suppliers supplies material and receives payments in forms of money and may also supply information or receive information).

Suppliers supply the raw material to the manufacturer and in turn gets paid for the supplies. The manufacturer then adds value to the product by passing it through the manufacturing process and thus resulting in the finished product. The finished product then flows to the distributor who act as a link between the retail sellers and the companies. The distributors stock the products and pass it on to the retailers who are the last mile contact to the customer.

The customer buys the product and in turn pays money to the retialer. In addition to the money the customer pays he/she also supplies information i.e. how much was bought when and where. This money and information then begins to flow backwards and helps the distributor and the manufacturer to plan their activities better to meet the custome demand. The money helps each stage of suppply chain to make profits and thus have sustainable business.

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Supply chain activities involve movement of goods and services from the production level to the consumption level. There are various stages in between, such as receiving goods from suppliers, warehousing it, capital investments, manufacturing, transportation, retailing, etc.

Facilitators provide various facilities into this chain, like capital investment could be done through taking loan from a financial institution, if the manufacturing process needs clearance the government agency is there to provide, moving goods require transportation facility, etc.

Hence, In this way, facilitators influence supply chain activities.