1. Types of Distribution Zero Level One Level Chain Two Level Chain Producer Producer Producer Consumers Wholesaler Distributer Retailer Agent Retailers Consumers Consumers Consumers Consumers

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3. Supply Chain Management Supply Chain Management (SCM) = the process of managing and controlling the sequence of activities from the production of a product to its delivery to the consumer, in a cost-effective way Raw Materials Production Customers Order volume determines purchases

4. Supply Chain Management Supply Chain Management (SCM) = the process of managing and controlling the sequence of activities from the production of a product to its delivery to the consumer, in a cost-effective way Raw Materials Production Customers Order volume determines purchases • Key Functions: • Stock control • Quality control • Vendor (supplier) mgt. • Purchasing • Transportation

5. Supply Chain Management Supply Chain Management (SCM) = the process of managing and controlling the sequence of activities from the production of a product to its delivery to the consumer, in a cost-effective way Raw Materials Production Customers Order volume determines purchases • Key Functions: • Stock control • Quality control • Vendor (supplier) mgt. • Purchasing • Transportation • Why is SCM Important? • Avoiding mistakes / waste (time, materials and $’s) • Matching supply with demand • Lean production / cost reduction • Minimize cycle time ( helps planning)

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