Supply Chain

What Is the Supply Chain

Steps involved in making a product and getting it to the customer

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Where Did Pepsi Come From

Convenience storeGrocery storeVending machine

What Goes into Making the Pepsi

WaterFlavoringsCO2

Chemicals/preservatives

• Aluminum• Design work

• Human Resources

• Capital Resources

Raw Materials

WaterCornCarbon dioxidePhosphoric acidKola nuts – caffeine &

flavoring

Producers sell to Manufacturers

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ManufacturerTake raw materials and/or

existing products and develop a new product

Increase price

WholesalerPurchase products from

manufacturers in large quantities Sell to retailers or directly to

consumers in smaller quantitiesIncrease price

RetailerPurchase from wholesaler or

manufacturer & sell to consumerIncrease price

Service ProviderSell services to consumerOften facilitate sale or

distribution of products between steps in supply chain