Supply Chain Management

Supply chain consists of all parties involved directly or indirectly in fulfilling a customer request. It not only includes the manufacturing and suppliers but also includes transporters, wholesalers, retailers and customers. Among the various functions the new product development, marketing, operations, distribution, finance and customer service. It is dynamic and involves the constant flow of information, product and funds between different stages. Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed).

It includes logistic and maintain the downstream and upstream relationships to ensure superior customer satisfaction to the organization. As we know about one of the main objectives of SCM is to lower cost. Although main objective is to lower the price, but incase of present situation of our country the price of necessary is hiking. Supply chain is a long process. If anywhere of this process fell to retain the cost under tolerated level without doing trade off then there will be an severe impact on the price of product. We are going to interpret the probable issues for price hike of necessary products.

Demand characteristics: the more the disposable income of population in an area, the more will be the demand of the product. Increase demand means there will be more distribution facilities available in these area and more distribution facilities will incur more costs. Ultimately price of essential product will go up. In case of Dhaka city we are facing this problem. And that affect the whole country.

Trade off: in case low value products, the marketers do not more about Trade-offs. There might be some area where they can reduce price of essential product which result in price hike of essential products.


Supply Chain is a sequence of processes and flows that take place within and between different stages. In our present situation it is like pull view processes where execution is initiated in response to customers demand. So everyone is charging extra charge (price). Because of failure of supply chain management to supply the necessary products on time or in large amount, the price of the necessary product is going up.