| Logistics or distribution | | | | distributors in other parts of the world or from local |
| The logistics chain includes the owners (wholesalers | | | | farmers. Food distributors wish to sell their inventory |
| and retailers), manufacturers' agents, and | | | | to grocery stores, other distributors, or possibly to |
| transportation channels that an item passes through | | | | consumers. |
| between initial manufacture and final purchase by a | | | | 4. Retailing: A retailer's inventory of goods for sale |
| consumer. At each stage, goods belong (as assets) | | | | consists of all the products on its shelves that it has |
| to the seller until the buyer accepts them. Distribution | | | | purchased from manufacturers or wholesalers. The |
| includes four components: | | | | store attempts to sell its inventory (soup, bolts, |
| 1. Manufacturers' agents: Distributors who hold and | | | | sweaters, or other goods) to consumers. |
| transport a consignment of finished goods for | | | | Supply Chain Management encompasses the planning |
| manufacturers without ever owning it. Accountants | | | | and management of all activities involved in sourcing, |
| refer to manufacturers' agents' inventory as | | | | procurement, conversion, and logistics management |
| "matériel" in order to differentiate it from goods | | | | activities. Importantly, it also includes coordination and |
| for sale. | | | | collaboration with channel partners, which can be |
| 2. Transportation: The movement of goods between | | | | suppliers, intermediaries, third-party service providers, |
| owners, or between locations of a given owner. The | | | | and customers. In essence, Supply Chain |
| seller owns goods in transit until the buyer accepts | | | | Management integrates supply and demand |
| them. Sellers or buyers may transport goods but | | | | management within and across companies. |
| most transportation providers act as the agent of | | | | Supply chain event management (abbreviated as |
| the owner of the goods. | | | | SCEM) is a consideration of all possible occurring |
| 3. Wholesaling: Distributors who buy goods from | | | | events and factors that can cause a disruption in a |
| manufacturers and other suppliers (farmers, | | | | supply chain. With SCEM possible scenarios can be |
| fishermen, etc.) for re-sale work in the wholesale | | | | created and solutions can be planned. |
| industry. A wholesaler's inventory consists of all the | | | | Some experts distinguish supply chain management |
| products in its warehouse that it has purchased from | | | | and logistics, while others consider the terms to be |
| manufacturers or other suppliers. A | | | | interchangeable. |
| produce-wholesaler (or distributor) may buy from | | | | |