Types of supply
|Types of supply|
There are many different types of supply.
For recipients when acquiring products, it is important to select the supplier accordingly. We take into account, above all, the criteria such as the quality and price of the product and any discounts that we may receive. The terms of the contract between the recipient and the supplier are important so that both parties are satisfied. The contract should contain information on the form of sale, submitting a possible complaint, and the scope of the service. Another important aspect is gathering information about the production capacity and financial situation of the supplier.
Supply chain - it covers all activities related to the processing of goods and also transport, at the same time speaking about the acquisition of various raw materials, i.e. the initial stage, as well as the delivery of products to consumers, i.e. the final stage. The most important feature is the flow of information, it is very significant during the whole process. The supply chain is a relatively old concept, because a large part of large enterprises could not function properly without this process.
The basic Principles of Supply Chain Management principles of supply chain management can be:
- speed of action
- creating value for stakeholders
- adjusting the activities of subsequent links in the chain
- getting to know and identifying to the expected results of cooperation
- providing in a suitable form, place and time, information flows between cooperating entities
Types of supply according to source:
- manufacturer supply (direct supply)- this is a direct transport of goods from the seller to the buyer without unnecessary delays in distribution and also without temporary goods storage. This supply is usually used when the third party acts as an intermediary between the supplier and the buyer.
- retailer supply (multi tier supply, agent supply)- at the moment the retailers select the assortment, they are tasked with dealing with the problem of supplying the product. Entrepreneurs who run a shop usually do not produce products they sell, so they have to get the products from the supply companies.
- high customization possibility supply - adaptation is possible to a very large extent
- global supply / international supply / local supply
- market supply - - supply is a process that includes all activities related to identifying needs, negotiating conditions, location and selection of suppliers, as well as observing contractors to gain confidence that it will meet all the conditions related to efficiency.
Types of supply according to delivery process:
- repetitive supply/single shot supply
- flexible supply - they are used for innovative products characterized by a short life cycle, production in many variants and small amounts as well as demand that is difficult to predict, for example, the fashion market.
- distribution network- market service including decisions and activities related to the belief of the producer's communication with final buyers. Distribution provides the consumer with the opportunity to buy products in a place, time and at a price that is attractive to them. It is a network of companies that maintain cooperation to physically send products to consumers, recipients. The strategy of reaching the market is different for companies and each company has to choose the right one for itself.
- demand curve / plan based supply / forecasted supply
- just in time supply - is to eliminate all unnecessary elements in the production process and to reduce the time which leads to savings by reducing the number of stocks.
- long / short term supply
- seasonal supply- these are deliveries that depend on the occurrence of the given products, materials that are available in a limited time and time of the year.
- delivery-to order supply
- IT based supply chain management coordination
- common ICT data interchange
- integrated IT systems- IT stem that supports the management process and handles all of its areas, is organized comprehensively or modularly
- joint / mixed supply
Types of supply according to tax and tariffs law:
- supply fro special economic zone
- international supply - the commonly used standard in determining the terms of such a delivery is the International Trade Rules called Incoterms (International commercial terms). It is used to divide transaction and transport costs, seller's and recipient's responsibility, determining who bears the transport risk. An important element is also the geogra- phical location, specifying the place of delivery.
- Meyr, H., & Stadtler, H. (2005). Types of supply chains. In Supply chain management and advanced planning (p. 65-80). Springer, Berlin, Heidelberg.
- Robert E. Lucas, JR., A.(1990). Supply-Side Economics: An Analytical Review Oxford Economic Papers.
- Swaminathan, J. M., Smith, S. F., & Sadeh, N. M. (1998). Modeling supply chain dynamics: A multiagent approach. Decision sciences, 29(3), 607-632.
- Swaminathan, J. M., Smith, S. F., & Sadeh, N. M. (1998)
- Meyr, H., & Stadtler, H. (2005)
Author: Karolina Tabak