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Dominance

In: Business and Management

Submitted By bobbyphan
Words 3358
Pages 14
Topic: When a distributor is a dominant player in a supply chain it faces many risks. Discuss the potential strategies that a dominant distributor might implement to a) retain its position of dominance and b) benefit the total supply chain.

Supply Chain Management – Distributor’s risk and strategies to retain dominance whilst value adding to the total supply chain

Introduction

The supply chain is made up of many key players; from the top we have the suppliers which provide raw materials (or finished parts) to the manufacturers who carry out required assembly to produce the products the market demands. The distributor collects these finished products from the manufacture and provides a logistical link to the retailers who sells at the local market and provide convenience to the consumers. At every stage of the supply chain the each player carries out activities that add values to the product until it reaches the end user (Porter, 1985).

The key players are linked together and are interdependent on each other (both upstream and downstream) as they rely on each other not just for profit but to achieve the overall effect of the supply chain to meet consumer demands. However the level of an organisation’s dependency on one another varies from relationship to relationship within the supply chain. As a result dominant players within a supply chain can greatly influence the other players to achieve perpetual dominance and/or mutually benefit all players, (Maloni et al. 2000).

This paper will examine the supply chain risk affecting the dominancy of distributors and the strategies that distributors can adopt to maintain their dominancy, whilst benefiting the whole supply chain.

This paper is organised into three parts; part one will outline specific risk to the dominance of the distributors; part two will outline strategies available to distributors to...

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