An Idea About How Supply Chains Play An Important Role In The Economy

An Idea About How Supply Chains Play An Important Role In The Economy

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Looking at the very concept of supply chains itself is very vast. Most of us might wonder what exactly a supply chain is. One thing for sure is that, we all know that this could be one of the most talked about subjects in the world and all the transactions that take place, be it in a consumer market, good market, services market or any other field, there is a supply factor involved. So what I can derive from my perception is that there is chain of supply factors in every process. Hence, supply chains can be explained in both at Macro and Micro levels.

At a macro level supply chains involves transaction between two or more countries or we can select a particular product and explain various kinds of distribution process that occurs from a product being produced and till it reaches the last consumer.. While a micro level supply chain has various subjects, we can select any kind of market that exists in a particular place or a situation and so on.

So to be precise, supply chain explains the process in which a product moves from the beginning, till it reaches the ultimate consumer. While going through this process it moves through various stages, gets value added, undergoes changes and when it is ultimately bought by the consumer to use, the product is entirely different. Hence we can say that the process involves a lot of economic processes and are affected by various factors at different levels. Of course, one thing I know for sure is that there are various theories explained by economist revolving around this topic.

If we look at the fundamentals of the supply factor in a market. We understand that supply creates its own demand. This concept is a well known and is understood by many people. Also, we know that demand for a particular kind of product depends entirely on the market and the prices at which the product is sold. Not only this, the market entirely depends behind the kind of product, its purpose and reliability.
Let us take the vegetable market, for example. We know every household buys vegetables regularly. Vegetable we know is a highly perishable product. Most of the goods like the tomatoes, lady Finger, pumpkin and many others in this variety gets spoiled easily and are considered as highly perishable product. So if we look at the supply chain, it starts with the farmers who actually cultivate these vegetables. The vegetables are taken to the market and supplied either wholesale or retail. The costs of selling the same vegetables at wholesale or retail vary depending on the location, season it's supplied. Out of these a lot many vegetable are seasonal and these vegetables can be grown only during the particular season.

Some of these vegetable are bought by the wholesaler who has storage facilities and supplies these products during the non-season at a much higher price. We know for the fact that during the season the demand is also high, realizing the fact that its season time, fetches more prices for that particular product. Hence, you can see the supply chain functioning, where the product gets into the hands of a number of people and ultimately reaches the consumer at much higher price. So the supply chains influence the market to large extent and market fluctuates according to the factors involved in it. Today, we have a number of news channels, providing updates every hour. I do spend a lot of time watching news on my HD TV which I bought trough my Dish Network Offers. If we are in a position to research on this topic closely, then we can clearly identify the behavior of the supply chain and the various factors influencing the market.

About the Author:
Stuart is a freelance content writer. He spends a lot of time watching news on HD TV powered by Dish Network Offers. He wants to share some of information about supply chain in the market.



Article Originally Published On: http://www.articlesnatch.com


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