goods start out as raw materials and, as they move through the supply chain, are transformed into intermediate products(also referred to as components or parts), and finally, into finished products. the finished products are shipped to distribution centers and from there to retailers and customers. returned items flow in the reverse direction from the buyer back to the seller. let's look at the supply chain for Nike sneakers as an example. Nike designs markets, and sells sneakers, socks, athletic clothing, and accessories through out the world. Its primary suppliers are contract manufacturers with factories in china, Thailand, Indonesia, Brazil, and other countries. These companies fashion Nike's finished products.