The supply chain plays a major and vital role in the global economy as it is the network between businesses and suppliers to produce and distribute products to end-users. The supply chain is made up of people, entities, resources, as well as information Supply chain issues can drastically affect how businesses and consumers operate around the world. While every business will always have some sort of supply chain challenge, the Covid-19 pandemic created a plethora of new supply chain issues. Let’s take a look at some of the major issues supply chain leaders are facing today!
In the supply chain model, goods from a manufacturer or producer are sent for storage from where the goods are delivered to resellers or the end-user. Cross-docking is a supply chain model where businesses remove the storage link. By removing this link, cross-docking allows for the manufacturers of goods to deliver products straight to the customer without having to go to a storage facility or warehouse first. This practice is beneficial cost and time-wise for both buyers and sellers.
The flow of goods is an important cycle of how goods and services flow from start to finish within the economy. At each stage of the flow, there is a movement of goods as well as a change in the monetary value of the products. It is a basic understanding of the movement of goods and how it contributes to the economy overall. To explain this process, we can divide it into three stages that simplify the movement of goods and what occurs during these different points of exchange.