The delivery of products and goods to customers from the buyer to the seller. To a large extent it is expected that the seller/producer of the product or commodity arranges the delivery of the product or commodity at an inclusive price.
The supply chain costs (being the cost of delivery products from production to customer) has been used by producers to gain advantage over their competitors. By managing the supply chain costs, more competitive prices can be offered to the buyer.
Strategy – The associated cost with the transporting of goods and commodities can be complex, costly and time consuming. This may include Rail, Road, Seaborne Freight and Airborne freight costs individually or in combination.
With constant changes in supply and demand as well as the ever-increasing cost of transport, the need to understand the full supply chain is essential. It is important to develop a clear and balanced strategy that will ensure the management of these delivery costs and ultimately ensure competitive pricing and protection of the bottom line of the producer.