It is said that "ignorance is like blindness." But is the one who sees, then, responsible? Being unknowledgeable or ignorant about a topic or situation limits our ability to form opinions or take action. However, if we have a basic understanding, does that grant us the ability to comment and take action?
These are not simple questions, and the answers are not straightforward either. This is the reality we face daily, from when we wake up to when we go to bed. We make so many decisions every day that considering each one individually can be overwhelming.
Let's be realistic: not everyone is destined to be a hero or savior of others. However, we can all be catalysts for positive change. It is not about keeping meticulous records of every decision in an Excel sheet but rather about contributing with small, conscious gestures that, when combined, can make a difference.
The topics discussed in sections like "The Flavor Trail" are curious because here, everyone is both a judge and part of the good results and the bad ones. Why? Because we all belong to the chain. The premise is simple. It remains the same as in the previous article: "In a distribution chain, each agent operates independently. However, ultimately, a buyer and a seller are always needed."
Talking about distribution or value chains is akin to discussing sustainability. We have all heard about it, but in most cases, we understand very little and sometimes think, "Why bother learning if it doesn't affect me?".
To better understand the section on "The Flavor Trail," let's explore it a bit and truly grasp its importance and how it affects us.
First, let's address the basics or the most common starting point, which is the "seller and buyer" of our premise, which consists of a distribution chain.
The concept of a distribution chain is present in all sectors, regardless of industry, as it refers to product management. A simple way to define a distribution chain is as follows: all the processes needed for a product's creation to its final consumption, sometimes even including consumer feedback.
Within the market, we can find three different types of distribution chains:
Direct Distribution Chain: Where a company produces and sends goods directly to a warehouse to later be delivered directly to the consumer.
Short Distribution Chain: Where a company produces goods and sends these to an intermediary who specializes in selling and distributing these goods.
Long Distribution Chain: Where intermediaries can be involved from the production of a good to its sale and distribution.
(Pérez & OBS Business School, n.d.)
Does this make it as clear as water? Probably not. Let's simplify it using Marina Barcenilla's example of preparing a fictitious paella.
The ingredients for this fictitious paella include:
We will see how the three distribution chains work using this recipe.
Direct Chain:
Imagine you decide to prepare the paella from scratch. You go directly to the producer to acquire everything needed:
In this chain, there are no intermediaries. Each ingredient passes directly from the producer to you. This can be ideal for ensuring freshness and fair pricing but requires more effort on your part.
Short Chain:
Now, let's consider a more common and practical alternative. You go to a local store:
Here, an intermediary (the store or fishmonger) simplifies your access to ingredients. Although the price might be slightly higher than the direct chain, it saves time and effort.
Long Chain:
Lastly, the most common option for many people is the supermarket.
Multiple intermediaries are involved in this chain. Although costs are higher and freshness may differ from the previous chains, it is the most convenient option as everything is available in one place: more money for less effort.
There is nothing wrong initially. However, we could say that the British East India Company was simply "in it for business." This small detail, "just in it for business," can make an argument either good or bad.
Let's move away from the field example and look at a digital one, someone who says, "Why bother learning if it doesn't affect me?"
Meet Tim, a graphic designer who, instead of selling a unique logo directly to a business or client, uploads his design to an online platform where any business or individual can purchase it.
The platform takes Tim's design and sells it to multiple clients at a higher price. A significant portion of the money these clients pay goes to the platform, the intermediary. As a result, Tim, as the original designer, receives only a small fraction of the final price because the platform takes a significant cut, as it does "most of the work." Thus, although Tim reaches more clients through the platform, the intermediaries significantly reduce his earnings and do not fully recognize the value of his creative work.
But what's most curious about all this is that the platform has hundreds of designers like Tim, so if Tim falls ill and cannot deliver a logo on time, he will likely be replaced by another designer who can or will probably charge less but with lower graphic quality.
It's not that doing business is bad—not at all. However, we must advocate for fair and just businesses and jobs. At the end of the day, everything is a negotiation, but it is up to us to decide whether we make it good or bad. Also, let's not overlook that a forced or imposed negotiation is not a negotiation at all.
Are we negotiating or being coerced?
Satoricha ~
References
Pérez, A., & OBS Business School. (n.d.). Cadena de distribución, conocerla y entenderla para poder mejorar la empresa. OBS Business School. Retrieved 12 9, 2024, from https://www.obsbusiness.school/blog/cadena-de-distribucion-conocerla-y-entenderla-para-poder-mejorar-la-empresa