The Supply Chain of Cocaine Essay Example | Topics and Well Written Essays - 2000 words

The Supply Chain of Cocaine - Essay ExampleIn due course of time, the use of goods and services of Cocaine evolved as a stimulant drug being used by various un-prescribed and unaccredited purposes resulting in more social and medical problems. The bring home the bacon chain through which Cocaine is delivered all roughly the global as well as farmingal securities manufacturings comprises of manufacturers, distributors, retailers and customers. But due to the cellular inclusion of traffickers that consequently change magnitude legal barriers, the add on chain of the intentness emerged to be complex and too challenging to be managed in effect (Karch, S. B., A Brief History of Cocaine From Inca Monarchs to Cali Cartels 500 Years of Cocaine Dealing ).This paper ordain focus on providing with a comprehensive and elaborated description of the Cocaine industry in congress to its supply chain system. With this concern, the discussion of the paper will focus on the participants en gaged in the supply chain of the industry along with the factors that tend to have a significant impact on the absolute system. In addition, the current trends in the supply and demand for Cocaine will also be discussed in this paper. The cocaine industry operates fundamentally in export-oriented markets, i.e. cocaine is principally produced for the purpose of export in new(prenominal) countries. The industry came into being after the invention of cocaine in the 1980s which was followed by huge demands in the pharmaceutical and chemical industry as well as in the stimulant drug market apart from heroine. The supply chain executed in the industry from the traditional period has been quite complex, approach consuming as well as time consuming majorly due to the lengthy process of travel engaged with the distribution of the product. For instance, the coca leaves are cultivated in one location, i.e. the remote regions of a nation and are processed into coca base in other locations w hich are basically the urban and agrestic areas. These processing areas are also used for its storage. Similarly, until and unless the cocaine is received by the end customer, it travels through many places for storage and also for transportation (Castells, M., End of Millennium). One of the major differences between the structure of supply chain in the cocaine industry and that of the other industries can be observed as the inclusion of the financial experts in the trade dealings of this industry. These financial experts are engaged for handling the generated money from sweeping transactions of cocaine and are responsible for banking, handling drug profits and its laundering. Financers engaged with this industry, generally separate that a profit earned, is reinvested in the cocaine industry (Iron Crown Enterprises Staff, An Eye for an Eye). Although the major activities of the industry are handled by traffickers but the finances, the profits and the investments are tackled by the agents (Castells, M., End of Millennium). Cocaine industry involves high risk in its supply chain management. These can be illustrated as the market risks, transaction risks and operational risks. Market risks are caused due to the fluctuations in the supply and demand flow of the industry. Due to the enforcement of unappeasable legal measures in the manufacturing nations, the supply of cocaine has often been witnessed to fall without any prior information. Moreover, as an