Business of Design - Week 4
Business of Design - Week 4 DSN 143
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This 2 page Class Notes was uploaded by Anastasia Penn on Friday February 12, 2016. The Class Notes belongs to DSN 143 at Radford University taught by Dr. Robinson in Spring 2016. Since its upload, it has received 14 views.
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Date Created: 02/12/16
The Supply Chain This is the process of how things get to consumer “concept to consumer” o Design process determines the concept The production process turns concept into a product Traditional Supply Chain 1. Raw materials (what do you need) : natural, manufactured 2. Intermediary producer – turns fibers into fabric 3. Manufacturer (components + design concept = final product) 4. Distributor (buys from producer → sell to retailer) 5. Retailer “end user” (sells to final consumer) 6. Consumer – buys product to use Steps are separate Each segment produced “final product” which was sold to the next segment Changes in Supply Chain Became more integrated o Vertical integration: A company operates at more than one stage in the production process Greater control over process 1. Forward: company extends its operations into later stages a. Ex. Fiber producer acquires fabric making abilities 2. Backwards: company extends operations into a previous stage (more control) a. Ex. Fabric producer adds fiber production Steps may be skipped “scrambled chain” Many companies follow the traditional chain Some are integrated and do multiple steps All results in getting the concept to the consumer
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