Primary with Secondary and Tertiary Sectors and the Commodity Chains - Essay Example

First Supervisor Primary, Secondary and Tertiary sectors and the commodity chains Introduction When it comesto commodity chain management it is always important to look at the economic sector that each industry falls in. this is very important when it comes to management of the commodity as it is able to seek out on the amount of information about the number of people that are involved in making, selling and consumption of a certain commodity (Sherman). The categorization is seen as a division into: primary, secondary and tertiary as explained in the following paragraphs. In order to explain this well, the paper will use describe the commodity chain of a candy bar in to various sectors as outlined. Primary sector The primary sector of a candy bar will first of all include obtaining of the raw materials for the making of the product. The primary sector in the commodity chain will include the farmers, processors and ingredient merchants. With this regard, all types of natural resource will be transformed in to different industries that will include chocolate, candy and beverage as part of the primary sector in the commodity chain (Sherman). Secondary sector The secondary sector of the commodity chain will be the manufacturers of the finished goods. In this case, the final product which is the candy bar. During this time, all of the manufacturing, the processing and the packaging will lay with the secondary sector. The activities that will be associated with the secondary sector will include production of different flavours of the candy bar, design shapes, packaging of different sizes, freebies and more (Sherman). Tertiary sector The tertiary sector of the commodity chain will be the services and retail industry. In the case of a candy bar, the sector will be able to make the product available to consumers and to other businesses. The activities that will be associated with the secondary sector will include retail businesses, whole sale, distribution and transportation of the candy products, promotion and advertising among others. During the tertiary sector, there will be that part of the chain which is intangible at times also referred to as an intangible good. One of the main characteristics of the tertiary sector will be the use of knowledge from people in order to increase on the productivity, potential, performance and the sustainability of the economy instead of having an end product. In the candy bar commodity, the intangible good will include advice, experience, transport, use control especially for young children. The kind of information which is provided in this sense is also at times referred to as a service; some of the areas in the chains management is also referred to as the service sector (Sherman). Commodity chain Commodity chain can be defined as the sub sector of logistics in which logistics is usually extended of over several sectors that will involve commodity suppliers and customers in the industry. Commodity chain management is a very important issue that contributes to the right processing of operations in a business. Commodity chain will thus involve the effort of all the companies that are important in helping the transaction and transportation of the product from the manufacturer to the end person who is the consumer of the product (Sherman). There are several activities that are involved in the commodity chain mechanism, and this are closely related to the area of manufacturing, outsourcing, production and lastly logistics. In this sense, it is also important that the commodity chain tasks are also managed in a very proper manner and in a way that will ensure there is a reduction of cost of supply and time that is used. In this sense, it is also important that the commodity chain for the product is very cost effective and makes proper use of available resources. Commodity chain management thus is the kind of management that will involve the delivery of goods from the manufacturer to the consumer through the provision of value together with sustaining competitive edge in the markets. For example the commodity chain of a candy bar will involve roles of each player in the chain; their role will also be in reducing the cost of inventory and the time that is involved to transport the candy bar from the manufacturer to different points all over the world. As the product moves from one point to the other, its value will also increase. The activities that will be linked in commodity chains management will also be related to the product, available financial capital and the flow of information about the candy bar product and other services that will be important in completing the commodity chain (Sherman). The practice of commodity chains management is usually employed by any type of business at various levels whether the business is operating domestically or internationally. However when it comes to international company’s like the Cadbury’s it is important that the management of commodity chain is stable and it can be able to ensure that the product is very available to the customers by without having to compromise on the competitive advantage it has. Conclusion With regard to the commodity chains management of the production sector, like the one in the candy production one realises that it is one of the industries that invest in production of different flavours of candy in order to lure different customers and retailers too. The sector will include research, chemistry and improved technologies for production. The manufacturing sector and commodity chain is usually closely linked in order to realise results. It is thus important that the commodity chains come to understand all the aspect of the chain in order to be able to manage the production process to the process of the consumer of the production. By being able to consider all the factors in the commodity chain management, then the business and growth of profits of the candy bar will be realised. In addition there will be harmony in the way people work in the organisation. This is because the commodity chain does not stop at the consumers’ door; however it creates room for need of new supplies. This will mean that the commodity will have to continue being produced so as to meet the ever growing demand from the manufacture and also on the side of the consumer. When it comes to candy there will be no alternative to producing the commodity, as the chain is mostly reliable to the consumer preferences, this means that the chain remains the same all through, be it that the product is of different flavour or not. Sources Sherman, Richard. Supply Chain Transformation: Practical Roadmap to Best Practice Results . Wiley; 1 edition, 2012. Read More