ADDITIONAL INFO SOURCE: https://www.ibm.com/topics/supply-chain-management
A. Raw Material - is essentially the unprocessed product and is the chief constituent of the primary
product that is processed or manufactured. Raw materials are also an important part of a firm’s
inventory management. They are component parts of the stock of inventories carried by a
manufacturing firm at a given time.
Types of Raw Materials
The basic classification of raw materials are:
1. Direct: These are basic unprocessed materials or resources. Goods like metals, wood, sand etc are direct
raw materials i.e. they are in their natural form.
2. Indirect: Materials, which are not required to make the finished product, but without which production
of final goods cannot be done. Goods like helmet, gloves, tools, office chairs etc.
REFERENCE:
https://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/15631-rawmaterial.html#:~:text=Raw%20material%20is%20essentially%20the%20unprocessed%20product%20an
d,by%20a%20manufacturing%20firm%20at%20a%20given%20time.
B. Supplier - is a person, organization, or other entity that provides something that another person,
organization, or entity needs. During transactions, there are suppliers and buyers. Suppliers
provide or supply products or services, while buyers receive them. Establishing a proper
relationship, managing the requirements, and communicating clearly with suppliers is essential
to the organization, which means a comprehensive supplier management policy is required.
REFERENCE:
https://marketbusinessnews.com/financialglossary/supplier/#:~:text=Supplier%20in%20supply%20chain%20management%20Supply%20chain%20
management,products%20and%20services.%20It%20is%20a%20business%20term.
https://www.medius.com/glossary/what-is-supplier-management/
C. Manufacturer - manufacturer in business is an entity that sets up a solid process involving raw
materials, components, or assemblies, usually on a large scale with different operations, which
are divided among different workers. They are commonly used interchangeably with producers.
They are involved in the real process of manufacturing, where the products and/or services are
created and bought into existence.
They are the ones who actually produce and create things, products, goods and services from the
basic raw material. They work on the base root level of the production of goods and services. They
generally manufacture the products in a bulk quantity and are responsible for its origin, quality
and creation.
REFERENCE:
http://www.differencebetween.info/difference-between-supplier-andmanufacturer#:~:text=They%20are%20responsible%20for%20the%20supplychain%20management%20system%2C,different%20operations%2C%20which%20are%20divided%20am
ong%20different%20workers.
D. Distributor - the ones in contact with the manufacturers. The role of the distributor is that of an
intermediary entity between the producer of a product and another entity in the distribution
channel or supply chain, such as a retailer, a value-added reseller.
Distributors play a vital part in keeping the lines between manufacturers and users operating
smoothly. They can expedite response times, enhance a company's reach and even create valueadded packages. Distribution businesses can buy from manufacturers and sell to retailers, or
directly to consumers and/or businesses. Distributors also can provide logistical and storage
support for manufacturers.
REFERENCE:
https://www.assetpanda.com/resource-center/blog/the-difference-between-wholesaler-anddistributor/
E. Retailers - are responsible for delivering and stocking the items for the customer after the
customer buys the products. The supply chain might entail shipping the product directly from the
distributor or wholesaler, but in other instances, the retailer might deliver the product directly to
the customer instead. The purpose of retail supply chain management is to ensure product
availability, manage the cost of doing business, and make it possible for customers to get your
products when and where they need them.
REFERENCE:
https://ratings.freightwaves.com/what-is-retail-supply-chain-management/
https://www.thebalancesmb.com/what-is-a-retailer2890386#:~:text=Retailers%20are%20the%20consumerfacing%20part%20of%20the%20supply,distributor%20and%20then%20resell%20them%20to%20the%20
public.
F. Customer/Consumer - is a key figure in the supply chain and their needs, values and opinions will
affect the supplier decisions buyers make. Consumers now have access to information on all these
areas and have therefore gained unprecedented influence over supply chain management.
REFERENCE:
https://collegeforadultlearning.edu.au/how-consumers-affect-supply-chainmanagement/#:~:text=The%20consumer%20is%20the%20key%20figure%20in%20the,operate%2C%20a
ll%20because%20of%20the%20customers%20they%20service.
https://www.achilles.com/industry-insights/the-role-of-customers-in-the-supply-chain/