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

The Supply Chain of Cocaine - Essay Example In due course of time, the use of Cocaine evolved as a stimulant drug being used by various un-prescribed and unauthorized purposes resulting in many social and medical problems. The supply chain through which Cocaine is delivered all around the global as well as national markets comprises of manufacturers, distributors, retailers and customers. But due to the inclusion of traffickers that consequently increased legal barriers, the supply chain of the industry emerged to be complex and too challenging to be managed effectively (Karch, S. B., â€Å"A Brief History of Cocaine: From Inca Monarchs to Cali Cartels: 500 Years of Cocaine Dealing â€Å"). This paper will focus on providing with a comprehensive and elaborated description of the Cocaine industry in relation to its supply chain system. With this concern, the discussion of the paper will focus on the participants engaged in the supply chain of the industry along with the factors that tend to have a significant impact on the entire 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 other 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, cost consuming as well as time consuming majorly due to the lengthy process o f travelling 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 which are basically the urban and rural 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., â€Å"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 wholesale transactions of cocaine and are responsible for banking, handling drug profits and its laundering. Financers engaged with this industry, generally assure that a profit earned, is reinvested in the cocaine industry (Iron Crown Enterprises Staff, â⠂¬Å"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., â€Å"End of Millennium†). Cocaine industry involves high risk in its supply chain management. These can be illustrated as the market risks, business 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 strict legal measures in the manufacturing nations, the supply of cocaine has often been witnessed to fall without any prior information. Moreover, as an