Money. Or in other words the economy. It's what makes the world go round. And for any business to be sustainable it's essential to take advantages of economies of scale to ensure profitability and sustainability. Therefore it can be said that a scarf business dealing in bulk scarves will be better off compared to a business that does not deal in packs.
Cloths like other products are produced by the manufacturer and find their way to the customer through a chain. The whole supply chain is as follows: the raw material which in this case is the wool sheared from sheep. The wool is sold by the farmer to a supplier who supplies to a scarf factory. The finishes scarves are sold to a wholesaler, and in turn are sold to a retailer. The retailer sells the products to the customer.
It is the goal of each organization in the supply chain to gain maximum benefit from this economic activity. Each organization will survive only if it makes a profit. And each organizations' benefit is maximized when advantage is taken of economies of scale.
It is well known that each business can offer better prices when it buys in packs. The result is lower cost. The same margin can be kept if the price is lowered. Therefore the same logic applies to the scarf business and a business dealing in bulk scarves can offer better prices and thus ensure sustainability.
The customer buys a scarf mostly during winter or fall. These are essential for warding off the effects of extreme cold temperatures. At the same time the price needs to meet the budget. And this can only be done when each organization in the supply chain deals the products in packs.
To summarize, each organization in the supply chain gains maximum benefits when it deals in bulk scarves. The customers will only buy when they get good prices. And the businesses can only exist when customers are buying. Therefore the whole business, from the supplier of raw material to the retailer, will be sustainable and profitable only if it deals in packs.
Cloths like other products are produced by the manufacturer and find their way to the customer through a chain. The whole supply chain is as follows: the raw material which in this case is the wool sheared from sheep. The wool is sold by the farmer to a supplier who supplies to a scarf factory. The finishes scarves are sold to a wholesaler, and in turn are sold to a retailer. The retailer sells the products to the customer.
It is the goal of each organization in the supply chain to gain maximum benefit from this economic activity. Each organization will survive only if it makes a profit. And each organizations' benefit is maximized when advantage is taken of economies of scale.
It is well known that each business can offer better prices when it buys in packs. The result is lower cost. The same margin can be kept if the price is lowered. Therefore the same logic applies to the scarf business and a business dealing in bulk scarves can offer better prices and thus ensure sustainability.
The customer buys a scarf mostly during winter or fall. These are essential for warding off the effects of extreme cold temperatures. At the same time the price needs to meet the budget. And this can only be done when each organization in the supply chain deals the products in packs.
To summarize, each organization in the supply chain gains maximum benefits when it deals in bulk scarves. The customers will only buy when they get good prices. And the businesses can only exist when customers are buying. Therefore the whole business, from the supplier of raw material to the retailer, will be sustainable and profitable only if it deals in packs.
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