Case questions: 1: describe the elements of the value proposition for the manufacturer member of Colinx. What would be the elements of the value proposition for the distributors of products that are shipped from colinx? That compete in mature markets with highly undifferentiated offers and capabilities are especially challenged with articulating a unique value proposition, according to Gartner. Analysts have therefore identified a three-step process to help such companies uncover the unique attributes of their value proposition, enabling them to differentiate themselves. The manufacturers market their products to distributors through PTplace, yet store all customer and transaction data on their own legacy systems. 2: What are the major sources of savings for manufacturer members of Colinx? The discount come from the saving for deliveries, which turn less cost per bound. They also share distribution center to help save money. 3: what are the keys to long-term sustainability of relationship such as Colinx? They need to be based on trust and corporation and have the same …show more content…
When they are many companies shipping like products to like destinations, consolidation reduces shipping and handling costs. When there is consolidation, cost effective shipments can be made more frequently. When shipments are made more frequently customer service improves, cost per pound declines, and less inventory is needed in the supply chain. When there are many companies supporting basic ecommerce web services to the same group of distributors or carriers, a common gateway reduces technical complexity and simplifies operation and maintenance. When many companies share a warehouse, common areas and support staff are shared, shared front line distribution specialists better accommodate peaks and valleys, and investments in high fixed cost technologies such as WMS, ASRS, conveyance, timekeeping, voice directed activity, and engineered standards becomes
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
Value Proposition is defined as "A business or marketing statement that summarizes why a consumer should buy a product or use a service”. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings." To structure a proper value proposition for a company, you must view the business model and three identifying features of the business. These three features are the Goals, Core Activities, and the Product Market Focus. The goal of a company is what it aims to accomplish. In regards to Imperial Oil ltd., their main end goal would be to create profits for their shareholders and to increase the overall value of the company. With creating more value to the company, the business can use funds to access and develop more research and advance their technology in growing the corporation. The core activities of the business are what value creating tasks will help the business run properly and how t...
We aim to provide products, services, benefits and rewards that deliver more value than any competitor.
How has the use of technology changed its interaction with its suppliers? Wholesalers? Other business partners?
This will lower the cost for the customer, keep each company competitive and allow them to keep a high margin. Another cost is the inventory cost for each company. Each company needs major capital to store their broad catalog of products. This is especially true for Fastenal because one of their niches is time of delivery. Since Fastenal has more distribution plants, we as a company are able to get a customer an order in a shorter period of time.
Value webs are concerned with what goes outside of the firm, and how well the firm coordinates direct, and direct suppliers, and delivery firms, and customers. By working with other firms, and using information systems, an advantage can be gained, by developing industry-wide standards for exchanging information, which eventually forces all market participants to subscribe to similar standards. Information exchange becomes more fluid, which positively influences efficiency, this in turn, makes product substitution unlikely. Such efforts also increase barriers to entry, which discourages new entrants. The internet has made possible to create highly synchronized value webs that integrate different business processes among the whole industry. These value webs are highly responsive and adaptable to environmental changes in supply and demand, as relationships can be bundled or unbundled, depending on the market conditions. Quick decisions can be made in order to optimize the value web relationship in order to deliver the required product or service in the right place and
Though the 4Ps approach has been working for companies for years, it became less effective as the market has developed. This happened due to the fact that product, price, place, and promotion do not include all the activities that are related to marketing a product. As a result, a more efficient approach was developed - the value approach.
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
The difference between a product being a success or a failure can come down to how quickly a team can communicate and correct problems. There are strategies that can centralize a lot of supply chain decisions to maximize efficiency and minimize problems as well as down time. According to kinaxis the strategy that is taking over the industry is called supply chain control towers. What these actually do is combine technology, people, and a centralizing process to achieve a more reactive supply chain. When a problem comes apparent, a supply chain control tower will fast track the solution. The supply chain control tower will be able to use all of its assets and delegate the information to relevant personnel extremely quickly. If a company doesn’t use a supply chain control tower, the information will get out at a snail pace if it even gets there. Without a supply chain control tower, no one really knows all of the elements that are affected by a problem. Only a central supply chain control tower will know how to connect the moving parts and fast track the correction
Weinstein, A. (2012). Superior customer value: strategies for winning and retaining customers (3rd ed.). Boca Raton, FL: CRC Press.
“Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user 's needs and wants. The scope of a product
Blue Ocean Strategy is based on 150 strategic moves spanning more than 100 years that have been studied in over 30 industries. The authors’ objective was to compare successful companies to their less successful competitors to analyse for a trend and common strategy. The result was the blue ocean strategy, which emphasises creating uncontested markets. The book is divided into three parts. The first part of the book explains the “cornerstone” of Blue Ocean Strategy which is value innovation. Kim and Mauborgne say “[w]e call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space” (Kim and Mauborgne, 2005, 1...
Thus, customers can get and receive information from each other instead of communicating to the corporations or the companies and as result they can easily spread information about company products as well as information about new arrivals
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
Explain how the company’s value-chain activities can be better linked to create value for the company.