Types of supply

From CEOpedia | Management online

There are many different types of supply. Delivery - displacement, flow of a strictly defined part of goods (raw materials, materials, products or goods) from the supplier to the recipient to a designated place within a specified period[1].

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.

Examples of Types of supply

  1. Raw Materials Supply: This type of supply refers to the materials that are required for the production of goods and services. Examples of raw materials include lumber, steel, fabric, plastic, glass, and rubber.
  2. Human Resource Supply: This type of supply refers to the personnel required to complete a task or process. Examples of human resources include engineers, technicians, and production workers.
  3. Financial Supply: This type of supply refers to the capital or funds that are needed to carry out a business activity or to purchase a product or service. Examples of financial supply include loans, investment capital, and venture capital.
  4. Knowledge Supply: This type of supply refers to the knowledge, skills, and expertise that a company or individual has to offer. Examples of knowledge supply include engineering, design, marketing, and research.
  5. Information Supply: This type of supply refers to the data or information that is used to make decisions or to complete a task. Examples of information supply include market research, customer feedback, and competitor analysis.
  6. Technology Supply: This type of supply refers to the tools, machines, and systems that are used to complete a task or process. Examples of technology supply include computers, software, and automated manufacturing systems.
  7. Logistical Supply: This type of supply refers to the transportation and storage of goods and services. Examples of logistical supply include trucks, trains, warehouses, and shipping containers.
  8. Energy Supply: This type of supply refers to the electricity and fuel that are used to power a machine or system. Examples of energy supply include natural gas, solar energy, and wind energy.

Other classifications of types of supply

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.

Advantages of selected Types of supply

One of the main advantages of different types of supply is that it offers businesses the opportunity to meet their specific needs. Here are some of the advantages of different types of supply:

  • Bulk supply allows businesses to purchase large quantities of goods at a lower price, which can save them money in the long run.
  • Just-in-time supply enables businesses to purchase goods as needed and helps them conserve on storage costs.
  • Emergency supply allows businesses to quickly access the materials they need in case of an emergency.
  • Specialty supply helps businesses access the unique materials and components they need for specific projects.
  • Custom supply allows businesses to craft the exact product they need for their unique needs.
  • Online supply offers businesses the opportunity to access a wide range of goods from a variety of sources, often at a lower cost than buying from a physical store.

Limitations of selected types of supply

Supply refers to the flow of goods and services from producers to consumers. There are several different types of supply, each with their own limitations. These include:

  • Price supply: Price supply involves the relationship between the price of a good or service and the quantity that is supplied. This type of supply is limited by the willingness of producers to provide goods and services at different prices.
  • Supply elasticity: Supply elasticity refers to how responsive the quantity of a good or service supplied is to changes in price. It is limited by the availability of substitutes and the cost of production.
  • Cross-price supply elasticity: Cross-price supply elasticity refers to how the quantity of a good or service supplied responds to changes in the price of another good or service. This type of supply is limited by the degree of competition between the two goods or services.
  • Supply of inputs: Supply of inputs refers to the resources and materials used in the production of goods and services. This type of supply is limited by the availability of resources, the cost of production, and the availability of substitutes.
  • Supply of labor: Supply of labor refers to the number of workers available to produce goods and services. This is limited by the level of unemployment and the availability of job opportunities.

Other approaches related to Types of supply

Introduction: The following are some of the different types of supply.

  • Raw materials supply - This involves the procurement of materials to be used in the production of goods and services.
  • Finished goods supply - This is when goods are manufactured and supplied to customers.
  • Services supply - This is when services are offered to customers, such as repairs or maintenance.
  • Capital goods supply - This involves the purchase of equipment and machinery to be used in production.
  • Human resources supply - This refers to the recruitment, training, and management of personnel.

In conclusion, there are many different types of supply, including raw materials supply, finished goods supply, services supply, capital goods supply, and human resources supply. Each of these types of supply has its own unique set of processes and requirements, and all of them are necessary for businesses to operate successfully.


Types of supply — recommended articles
Sales agent — Contract logistics — Distribution expense — Production logistics subsystem — Process innovation — Direct export — Dependent demand — Independent demand — Distribution logistics subsystem

References

Footnotes

  1. ↑ Swaminathan, J. M., Smith, S. F., & Sadeh, N. M. (1998)

Author: Karolina Tabak

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