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This profitability is measured in terms of the supply chain whole and not individual stages in the chain (as individual stages may lead to a reduction in the overall supply chain profitability).
Profitability will not make sense if looked at in isolation from costs. To generate profits in a supply chain, there is constant flow of:
- Information – transmitting orders and updating the status of delivery
- product - movement of goods or services from a supplier to a customer
- funds – payment, credit, finance and consignment arrangements...
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To generate profits in a supply chain, there is constant flow of:
- Information – transmitting orders and updating the status of delivery
- product - movement of goods or services from a supplier to a customer
- funds – payment, credit, finance and consignment arrangements.
These flows generate costs within the supply chain...
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