Overview: What is the purpose of a genuine supply chain?
A supply chains purpose is to produce, receive goods and transfer them quickly, withas little expense as possible, to the final consumer. For a supply chain to be efficient,there should be as few links/sales as possible. Genuine retailers/suppliers/producers aimto purchase goods as close to the point of origin as possible, to cut down on costsinherent in each onward supply. Most will order goods as they need them, and will onlyorder in long term advance if it is commercially sound to do so, that is, thatthey will be able to use them or sell them on quickly when they become available. Someproducers will offer good incentives to a trader if he orders in advance, including:discounts, good payment terms etc. Traders will typically aim to sell goods before theyneed to pay for them. See HMASAC Accounts and HMASCR Credibility guidance for moreinformation on this area.
It is natural for excise traders to become involved in a supply chain for genuinecommercial reasons. Businesses, including large corporations, will often contract theservices of specialist companies to procure the excise goods. Also genuine suppliers willseek to have a reliable supply of goods.