Question

For a product or service that you recently purchased, please describe its supply chain and the process of bringing the item/service to market (from raw material through retailer).

Answer 1

Here is the example of milk related products and value chain. The Milk supply chain consists of input suppliers, dairy farming process, suppliers for raw material, providers for related logistics and technology. In this case the source of milk is the dairy farm, and this will have upstream supply chain. The output will be the milk and related products, which passes through various channels such as milk consumers, private milk consolidators, processors, retailers etc. In the given example, most of the dairy farms directly supplies the milk to the consumer. When it comes to milk consolidators, they work in such a manner that by consolidating or collecting milk through small dairy farmers. In this case these consolidators are distributors in the downstream value chain. Sometimes they assimilate vertically to be food processors. Then comes the milk processors who create value added products by using milk, in several forms e.g. milk powder, cheese, bakery items, etc. Among this value chain, there will connection among processors as a raw material supplier. In the entire value chain, retailers are always closer to the consumers as they keep enough milk stock to fulfill the need. Retailers are always in good connections with cooperatives and food processors.