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Supply Chain of Tasty Lays!! :O)

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by

Audrey Thompson

on 26 February 2013

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Transcript of Supply Chain of Tasty Lays!! :O)

It all starts with
a LOT a bit of potatoes. Potato farms owned by Lays grow these potatoes. They are moved from the farm to the inspection table where they are either cut up or cut out of the production line. NOT MAKING THE FINAL CUT These Lay's potato farms, and farmers, provide the RAW MATERIALS. By the time they've arrived here, they are at the manufacturers place getting sliced up! Which is also owned by the Lay's company. To be a lays, they must be sliced very thinly. After being oiled and cooked, they become potato chips! But they aren't Lay's Classic just yet. Service providers like the ones who design the Lay's bag then package them! zzp! Then the people who you get the chips from, Wal-Mart, 7/11, etc, known as retailers, buy these guys from wholesalers- who buy them in huge quantities. Whole saler?
Yes, they sell the WHOLE entire product, just like retailers, but they buy the product in more bulk, to ensure low prices. Need some examples? Booker Cash and Carry. Not very familiar sounding, huh? How about wholesalers such as Costco and Sam's club? These wholesalers usually require a membership fee. This membership fee is sort of like a key to a secret service of bargains, nobody else knows about. Now please, if you would. Applaud? JUST KIDDING... So you know how we've been talking about... What was it all I just said??? They also own the manufacturers that chop them up and clean then up, as well as oiling them and finally cooking them. BAG MY CHIPS! This ownership that Lays has over these different companies is called... The combination in one company of two or more stages of production normally operated by separate companies. (Thanks google.) In a flow map type situation, it might look something like this. Ready To be sold Lays! Service Provider Manufacturer Raw Materials Verticle Integration of the Lay's Company This place provides the most simplest form of the product, potatos. Lays owns the potato farms. These people take the raw material, in this case potatoes, and change it into a chip! Lays also owns the manufacturers. Suppliers do what the Lays Company itself cannot, and that includes packaging the chips Once the potatoes have made this glorious tranformation
to a bagged Lays, the company sells them to other places. Can you remember what those places are called? Flashback... I remember this place.. This seems familiar,too. Retailers- wholesalers- customer. Easy enough. Wholesaler These people buy the product in bulk. Booker cash and Carry, Sam's Club and Costco Retailer Buys the product from the wholesaler and sells them to you. Wal-mart, 7/11, the USUAL PLACES Please, enjoy your next bag of chips, remembering the great journey it has been through.
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