I hope you had a nice and blissful weekend,
Right to the mark!
In my last post I said I was going to share a thought on the
types of entities and main types of supply chain.
Let’s discuss the 2 main types of supply chain:
1.
The Lateral or Horizontal Supply Chain
2.
The Vertical Supply Chain
The horizontal supply chain is the system where a firm or
company or a group of companies retain their core competencies and function
together to deliver a goods or service to customer or end user. The Vertical supply chain means one firm or
company owns the whole system of producing the product or service from start to
finish.
The vertical supply chain is out of fashion these days
because it is very tasking for a firm to own the iron ore mine, the blacksmith firm, the iron sheet manufacturing firm, the wholesaler shipping
firm, the distributing firms and the retail firms as well. Won’t that be
tasking? This is a vivid picture of a vertical supply chain system.
Onto some graphic representation
Vertical Supply Chain
One firm owns the line of operation
Horizontal Supply Chain
Each entity is owned by different firms as a
core competency
Now that we have got that out of the way, let’s look at the
entities of the supply chain.
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The 3 Basic Entities of a Supply Chain
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That’s a wrap for now.
My next post will cover the 4 main flows, manufacturing and
service supply chain models.
Till then, stay in the mix!
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