The relationship between supply chains and end-consumers, arguing that end-consumers are not strictly considered part of the supply chain. Several fundamental reasons support this argument:
- Supply chains are focused on supplying goods or services, while consumers demand them. The supply chain exists to fulfill this demand, treating the consumer as the recipient of the supply.
- Supply chains add value to products, while consumers consume products, often leading to a decrease in their market value. The supply chain’s duty is to add value, whereas consumers use their purchasing power to satisfy their demands.
- Supply chains are specialized, producing specific products, whereas consumers have diverse purchasing needs. Including consumers in the concept of the supply chain may lead to theoretical and logical confusion.
As a result, it is suggested that consumers be separated from the supply chain concept to avoid confusion. However, this separation doesn’t diminish the vital role consumers play in the existence and management of supply chains. The end-consumer is a crucial factor in supply chain management, driving supply chain activities based on their needs and wants.
Supply chain management (SCM) is inherently customer-centered and customer-oriented. The article emphasizes that everything in SCM, including strategies, activities, and approaches, is aimed at delivering products and services to satisfy the end-consumer. The end-consumer also provides valuable information and assistance for decision-making in SCM, enabling market responsiveness.
In conclusion, supply chains and their management are customer-oriented, with the end-consumer serving as the ultimate objective and guiding force. This customer orientation is fundamental to the purpose of supply chain management and encourages a system perspective-based approach that aligns all supply chain participants with customer needs and preferences.
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