The supply chain and its segments
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The supply chain and its segments
- Besides delineating the innovation it is also necessary to delineate the supply chain. This can be approached in two steps:
- Identification and description of the supply chain segments. Typically, the chain will include one or more of the following components: input suppliers; primary producers; first-stage processors or packagers (slaughterhouse, packing house, etc.); wholesalers, distributors and transporters; second-stage processors or packagers; retailers; consumers. Each segment should be described in terms of its mission, organisational profile, economic-financial profile, socio-cultural profile and vision upon the chain.
- Organizational-institutional analysis of the supply chain. The main question is what role is played by the different chain actors in the different aspects of chain governance:
- setting product standards and transaction conditions
- monitoring of the performance of suppliers in meeting these product and transaction conditions.
- implementing support systems assisting suppliers to meet product and transaction conditions, and setting incentives and sanctions to reward or punish performance.
