Capitalism Lab S03E04: Supply Chain and Warehouse

Supply Chain and Warehouse

This episode was all about focusing on the supply chain and warehouse. As the investigation went on, I finally discovered that the issue has been that I need more Gold. By using a warehouse, I was able to streamline my source of supplying my retail sources. It also made it easy to average out quality from the warehouse as it sells Good averaged from all the qualities that the warehouse receives.

Lessons learned with the supply chain and warehouse episode:

1. Warehouses are key to making life easy

By using a warehouse, you have the benefit of bringing your factories into 1 place to sell. In other words, your shops all connect to 1 warehouse and you are able to monitor your supply and demand better as you get an overall picture. Think of it as a summary of your business. Another benefit is that different qualities average out in the warehouse which is useful to maintain quality when you need average out quality. Lastly, you can sell to competitors at a margin as now you add profit on top to your factory. It’s basically another place to gain the margin of the product.

2. Capitalize on resources

When you have 5 cities to compete in, you will eventually need resources to produce enough to supply the whole ‘country’. The trick is to average out your quality to not lose out on the best product. Get a mine that is of high quality and one which is decent and supply your factory to average out the quality. This way you produce the average of both and decrease the pressure on your one mine. Remember resources are key and you want to be strategic to make sure that you can make it work for as long as possible.

3. Monopolize mines

If you reach a point you have enough money, buy up all the mines. If your competitor doesn’t find raw materials, how will their factories work? They will either have to stop manufacturing or buy their raw material elsewhere. It’s up to you to then decide if you want to sell the raw material at a high price and risk them competing with your product or making everyone buy the finished product from your factories.

What do you think? Leave a comment below 🙂