Supply Chain Paper

Topics: Solar cell, Logistics, Supply chain management Pages: 6 (839 words) Published: February 15, 2015
Supply Chain Paper
Jasmine Coney
September 29, 2014
Andrea Benjamin

Supply Chain Paper
Supply chain logistics are an essential element of the world economic system. Goods can be exchanged from numerous global corporations, with a form of value accumulating at each additional stage. A supply chain can be described as “the complete set of firms and facilities and logistic activities that are involved in producing materials, transforming them into intermediate or finished products, and distributing them to customers” (Perreault Jr., Cannon, & McCarhy, 2011). The following text will paint a map of the supply chain of the solar panel industry. The solar panel industry is one that is rapidly on the rise, it has seen an enormous amount of growth within the last 10 years. Each component of the supply chain is described in full, this includes the manufacturer, distributor, and retailer. Manufacturer

Solar panels are alternative forms of energy that is used in a variety of settings, such as lighting for street lamps, commercial, and residential settings (First Solar, 2014). Most of the solar panels are manufactured overseas, this is because companies can benefit from the lower costs of labor. The solar panels are built under the direction of United States based companies, a supply chain for a solar panel company typically may include the following roles: Produce a solar panal design, technical layout, and schematics Coordinate the product mix and material

Test the strength and durability before being released
Sourcing the raw materials, such as diodes and metal pieces
Create a brand to show quality behind the product
Receives feedback from customers to improve design
Panels are checked to make sure they are approved for environmental compliance regulations Shipping to a distributor
First Solar, LDK Solar, and Sun Power some of the largest solar panel manufacturers. These three brands are in constant competition to gain large accounts and be the provider of solar panels for the major solar projects across the globe. These firms had to create a brand image that would focus on quality and reliability, to be recognized as leaders in the industry. Distributor

The next piece of the supply chain in any industry would be the distributor. Due to the large size and the care needed to handle these solar panels, they require extensive logistical efforts to get them across the world. Some of roles that the distributor of solar panels are listed below: Arranges for the shipment of the solar panels internationally from Asia Receives in product that the manufacturer has sent

Makes a business relationship with retailers
Gets the retailer ground transportation of the panels
Reduces bulk shipments into smaller pallets
Provides logistics to the retailer
Collects the payment from retailers for the delivery of the panels Arranges credit on larger developments and orders
Helps contractors that are competing in the bid process
Distributors serve as the middlemen in the solar panel industry to make sure deals are completed correctly and efficiently. Solar panel deals can have extremely complex and complicated logistics, and any distributor must have sound strategic assets that are more than capable of delivering the goods to various locations in the world. Retailer

Finally in the supply chain is the retailer that will sell the solar panels for the manufacture, or a construction contractor that will use the panels for a particular job. Some of the manufactured panels are placed on sales floors at some commercial stores where they are sold to individuals that want perform small “Do-It-Yourself” solar panel projects. Many solar panels are sold online for marine and aviation applications. Some of the roles of the retailer/contractor in the supply chain are described below: Gives end user a place to purchase products

Provides the a selection of products
Is the...

References: First Solar. (2014). About Us. Retrieved from First Solar:
Perreault Jr., W. D., Cannon, J. P., & McCarhy, E. J. (2011). Basic marketing: A marketing strategy planning approach (19th ed.). New York: McGraw-Hill Irwin.
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