Profit formula in supply chain.

[ahmedo24]

In a business of manufacturing or production especially there exist the producer , the wholesaler or distributor and the retailer . In my opinion the manufacturer takes 25% of the profit, the distributor takes 35% and the retailer takes 40%. Do you agree to this ?.

 

[Sariana23]

If really something like that more or less is the benefits, I can not speak of percentages but your distribution is good. That is why I believe that if we were able to enter as a distributor or retailer, a great profit would be achieved, as long as there is adequate transportation so that we do not have to pay transportation expenses.

 

[Nurudeen]

Know i don't really agree to your ascertion on the sharing formulate. To me I think the best way is to give the manufacturer 40% out of the profit while the wholesaler and the retailer will know how to manage the rest between themselves. Why I said this is because it's the manufacturer that will foot the resources of the production.

 

[Trexxxy]

There is no way to estimate the percentages of profit , and this is not the case in all businesses, say car industry business for example. From the manufacturing companies to sales shop across the world . Also I think the manufacturer has control over the percentage of profit it makes.

 

[Afrinish]

In a business of manufacturing or production especially there exist the producer , the wholesaler or distributor and the retailer . In my opinion the manufacturer takes 25% of the profit, the distributor takes 35% and the retailer takes 40%. Do you agree to this ?.

 

[Ralphjoe]

When it comes to sharing of profit among the supply chain, I don't agree with your analysis or opinion because in the real sense, the producers takes the bulk of the profit margin, while the distributor comes a distant next, before the retailer, I can specifically put a figure or percentage to it now.

 

[joy101]

I think the best way is that the manufacturer will take 30/0 from the profit, while the wholesaler and retailer will manage the remaining ones, in business that is how if goes because you cannot have the same right with them.

 

[Seun4luv]

Formula for a surplus can be calculated by the following formulae: supply chain surplus = revenue generated from a customer - Total cost incurred to produce and deliver the product. Supply chain surplus = Customer value - supply chain Cost.

 

[Erik4150]

I don't think there is any problem with the percentages each sector in the supply chain gets. These percentages is not really set in stone. It differs from supply chain to another supply chain and it is influenced by several factors.

 

[Donkiz]

Each of the players in the supply chain sells his/her goods based on market force and the amount he/she is comfortable with. Out of three players in the supply chain, the manufacturer earns more because he sales in bulk to the wholesalers, the wholesalers makes more profit than the retailers from turnover.

 

[Alexandoy]

When it comes to the mark up in supply chain systems there is no general standard because it always depends on the commodity that the business is dealing with. For example the oil products, they are mostly standard in the industry but there are oil producing country that sells at a lower price. With that you can expect the total profit margin to be higher. With the distribution of the profit again it depends on the product. For traders of perishable goods from the farm it is the trader that gets the lion's share while the farmer and the vendor would be left with the crumbs.

 

[Highflyer]

Formula. Supply chain surplus can be calculated by the following formulae: Supply chain surplus = Revenue generated from a customer - Total cost incurred to produce and deliver the product. Supply chain surplus = Customer Value - Supply Chain Cost.The value chain is a process in which a company adds value to its raw materials to produce products eventually sold to consumers. The supply chain represents all the steps required to get the product to the customer.Supply Chain Management (SCM) is an important part of every organization, whether small or large. ... SCM also deals with the movement and storing of materials needed to create a product, as well as inventory management, and keeping track of finished goods from where they were created to who they go to.

 

[Setho]

There is a lot of perspective as to what might go wrong and what might go right to be honest. In such a business scenario the most important thing is how the work structures is places and whether or not the employees are pleased with how the whole things is going on because I'd acting independently then a lot actually depends on how well you do your role.

 

[Setfragil]

It is not every business that have sharing formula in supply chain. Some do not really have sharing formula they only give discounted price on the goods they supply the distributors and discounted prices are also give to the wholesaler. Sharing formula is not totally advisable as it can cause disagreement in the future.

 

[Sheyemanu]

Well, in reply to your question in the above post concerning what the profit percentages are in the supply chain, well i would like to state that i don't think you can estimate the percentages accurately but i do think the producer gets the most profit

 

[Setfragil]

Well, in reply to your question in the above post concerning what the profit percentages are in the supply chain, well i would like to state that i don't think you can estimate the percentages accurately but i do think the producer gets the most profit

You are right. There is no way that a supplier of a product will make more profits than the manufacturer of the product who put in a lot of resources to make the product.

 

[Kvngsammy]

You are right. There is no way that a supplier of a product will make more profits than the manufacturer of the product who put in a lot of resources to make the product.

I agree with you. If it was so, everyone would've been suppliers and the manufacturers would be out of business in no time.
I think the 40, 35, 25% should be the order. No way would a manufacturer suspect a supplier makes more and be okay with it or not hike the price. Considering the costs of sourcing for materials, production and even paying staff and shareholders

 

[Yusuf1]

Know I really don't agree to this. I think the best way to do this is to share the profit formula from the head to the tail. If the producer do not produce anything what does the distributor and retailers going to sell. So the manufacturer should get the biggest share

 

[Josemendez]

The profit of the retailer should not be fixed because his profits comes after much consideration of the amount spent on the goods and transportation to the shop

 

[Richard92]

The profit of the retailer should not be fixed because his profits comes after much consideration of the amount spent on the goods and transportation to the shop

Profit formula in supply chain is simply the way you supply all the amount of goods supply determine the particular game you are going to have.