Supply Chain Management Income Distribution

Question: Describe about the Report for Supply Chain Management of Income Distribution. Answer: Supply Chain Strategy with respect to Distribution Business Model Supply chain management is a broader part of the management system. Supply chain management is not only limited to the suppliers, but also includes the manufacturer, wholesalers and the distributors (Christopher, 2016). The supply chain management is not only responsible for managing the production of the company but at the same time it is responsible for managing the logistic network for the companies. It is also responsible for delivery of the goods to the customers. The supply chain of an organization includes five important steps. Among these five important steps, the second stage involves the transformation of the raw materials into finished products. This is probably the most important step. The third step involves shipping the finished products to the distributors. The fourth step involves the distribution of the products to the retail stores. Finally, the finished product is available to the consumers. The distribution business model includes not only the manufacturer but at the same time, it includes the distributor, wholesaler, job seekers and the brokers (Dosi, Fagiolo, Napoletano Roventini, 2013). The distribution business model is very complex in nature. The conventional or the traditional business model consists of three tiers or levels. The three levels or the tiers include the producers or the manufacturer at the first level, the wholesaler at the second level and finally the retailer is there at the third level. The companies strive for improving the supply chain operations, thereby increasing the competitive advantages of the company. The supply chain strategy should be revised after taking into consideration the cost pressures, suppliers and the technological developments. The different supply chain strategies include- manufacturing strategy, distribution strategy, centralisation or decentralisation, single or multiple sourcing, design of supply chain, design of the product and others. The traditional supply chain as well as the distribution model has gone through lot of changes. The older distribution business models were not that good because each party would try to use it for their own benefits (Rushton, Croucher Baker, 2014). Therefore, most of the time, the things failed to work out in a profitable way for the manufacturers, companies, suppliers or the customers. In the recent days, supply chain management has become more complicated. It is different from the traditional business models. The current supply chain models are useful for the modern day organization, although several authors believe that the use of the internet by the consumers or the end users have muddied the recent models as well. The fact is true; however there are few researchers who believe that this is not the case. According to few researchers of the present day, the distribution business models and the supply chain could work very well, if the organizations have a strong foundation. The e fficient and the right use of technology would actually support both the business distribution model and the supply chain management of the organization. Moreover, the supply chain management today could use software for fulfilling various purposes. The purposes include, projecting, planning and at the same time, it includes the implementation of the chain of the distribution as well. (Figure 1: The Supply Chain and the Distributor Model followed in most Companies) (Source : ("E-Waste Management At Redington", 2016) References Christopher, M. (2016). Logistics supply chain management. Pearson Higher Ed. Dosi, G., Fagiolo, G., Napoletano, M., Roventini, A. (2013). Income distribution, credit and fiscal policies in an agent-based Keynesian model. Journal of Economic Dynamics and Control, 37(8), 1598-1625. E-Waste Management At Redington. (2016). Redingtonindia.com. Retrieved 31 July 2016, from Rushton, A., Croucher, P., Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.