Supply chain
Supply chain surplus, also known as supply chain profitability, is a common term that represents value addition by supply chain function of an organization. Jonathan Birkin also defines supply chain surplus as "the difference between the revenue generated from the customers and the overall cost across that supply chain." The operational concept of it is 'sharing the profit that remains after subtracting costs incurred in the production and delivery of products or services. Ideally, profit is distributed to supply chain partners via transfer prices.'