Stakeholders in a Supply Chain
Stakeholders are those individuals or groups who have an interest in an organisation’s operations, and can affect or be affected by an organization’s actions.
Stakeholders in a supply chain are those found within the supply chain, and affect or are affected by its processes. There is an exchange of products, funds and information between the stakeholders in the supply chain to facilitate its smooth operation.
This is illustrated below:
1. Suppliers
The supply chain network starts with suppliers of raw materials, ingredients, components, commodities, etc., who provide these to the manufacturers to process required products and finished goods.
There could be one or many suppliers servicing one or many manufacturers.
2. Manufacturers
The second linkage in the network is with the manufacturers who convert, process, build, assemble or furnish a product or service.
Warehousing and storage services are common in this step because of the continuous process of manufacturing.
3. Distributors
Distributors join the supply chain network in order to ensure the product or service reaches the consumer.
The finished product is transported from the manufacturer through a distribution system that includes warehouses and distribution centres. The requested quantity is delivered to the retail outlets where the product can be broken down into smaller loads for further distribution.
4. Retailers
After receiving the finished products from the distributors, the retailers break them down further into smaller quantities and offers them to the final consumer.
Retailers have outlets such as department stores, grocery stores, discount outlets, mass merchandisers, etc.
5. Consumers
Consumers are the final link in the supply chain network. They are shoppers who purchase products from the retailers by selecting products of their choice.
Whatever the consumers demand is fed back into the supply chain in the form of information to the suppliers who start the network all over again.
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