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How can bullwhip impact the supply chain
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What are the three lines of business within Insuracorp?
InsuraCorp is an insurance company that has grown as a result of acquisitions. They have several different types of insurance. The book points out that in the past, “there was no attempt to market products to customers across business units.” InsuraCorp provides financial products, services and support. The three lines of business in which they service their clients are:
1. Individual Insurance
2. Retirement Service
3. Group Insurance
With individual insurance this includes term life, universal life, and whole life policies. Retirement plans such as 401(k) and 403(b) are offered under retirement services. Group insurance include group life, disability insurance, and long-term care insurance.
Why did InsuraCorp decide to use a centralized approach to IT?
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Not only did we want to provide a consistent brand image, but he also wanted a single point of contact for customers which include a intergrated website that gives bot h sales personnel and customers access to all products and service offerings. In order to accomplish this it requires, “investing in enterprise-level data.”
InnsuraCorp’s decision to use a centralized approach to IT was due to the fact that they had a decentralized IT organization structure. This caused processing inefficiencies and duplicate IT resources which caused barriers to the company’s data integration initiatives. A centralized structure would consolidate all IT resources at corporate headquarters.
What is the bullwhip effect? Why is it a problem for businesses?
According to Wikipedia, “The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory as response to swifts in customer demand as you move further up the supply
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
The inventory issue also ties in with transportation problems where accurate lead and delivery times are non-existent. The inventory turnover is not at its full potential because if the DC has merchandise yet the stores are stocked out, the inventory is frozen and will become obsolete.
He wanted to take what he had learned and apply it to a new venture in which he would have full control over his unique vision. Thus, he began to develop Aligned Insurance’s 18 Points of Differentiation. For example, Aligned Insurance differentiates itself by having specific tiers of service, each with clearly delineated levels of policy coverage and service provided. As well, Aligned Insurance deals exclusively in Business Insurance, which means unlike other brokerages such as Marsh and Aon, Aligned Insurance will never be backlogged with personal lines service work, and they put the commercial client
In summary, “Internet activities are not most significant in competition, such as informing customers, processing transactions, and procuring inputs”. (Porter, 2001) significant corporate assets--skilled employees, proprietary product, and efficient logistical systems – these factors are the most important to keep competitive advantages. In fact, it is foreseeable that the Internet's evolution will come up in the future involve a shift “in thinking from e-business to business, from e-strategy to strategy”. (Porter, 2001)Only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage.
middle of paper ... ... He believes it is about creating integration and increasingly finding out about the company’s valuable customers. The online platform enables customers to shop online (Herrick: 2011).
Just like anything in life, there are going to be certain peaks and valleys to worry about. There is one concept however that tries to make sense of this madness. According to finance.zack.com It is called risk pooling. Risk pooling is mainly used in the insurance industry to try and lower risk for things like earthquakes, fires and hurricanes. This technique will diversify risk between several companies through pooling agreements. In the world of supply chain, this theory suggests that when demand is lower in a certain area, there is probably a different area that is experiencing high demand. Because of this, you don’t have to keep as much safety stock. If high demand and low demand with cancel each other out, than less inventory will be
When a suppliers' costs changes for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing corn so that the cost of corn that can be grown for a given quantity will decrease. Basically producers will be willing to supply more corn at every price and this shifts the supply curve outward, an increase in supply. This increase in supply...
Before Caribbean insurance companies began to expand, this field was first dominated by British and Canadian insurance companies. The Barbados Mutual Life Assurance Society had expanded from Barbados in the past, however it was with aid from the withdrawal of foreign companies that they received their largest expansion. During the 1970s, Canadian companies like Sun Life and many others began to pull out of the Car...
Invitrogen, founded in 1987 was one of the biggest life science companies that derived their success from mergers and acquisitions under the direction of CEO Greg Lucier. Mr Lucier was quoted say “Acquisitions will always be a part of our strategy due to the pace of innovation of our business”. Invitrogen was able to acquire 15 other companies and grew their business to 35,000 products and 10,000 customers. Their customers include academic research, biotechnology and pharmaceutical companies as well as governmental laboratories.
Amongst some of the factors that are responsible to causing the bullwhip effect include that of all the participants in the supply chain process making their trade predictions in isolation just like in the case of pampers as explained above (Turban, et al., 2002). The process of order batching may also take a central role in bringing about the effect for the reason that most of the changes that are brought about by product demand happen to be hidden. Additionally, it is important to note that most of thee practices may be exaggerated by some of the marketing efforts developed by the company thus bringing about the snowballing effect to the organizations (Christopher,
J. David Cummins, A. S. (1999). Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management: Efficiency, Technology, and Risk Management. Springer.
Individual insurance business having enjoyed growth in previous years is expected to have key position in future also. Therefore, there is an imperative need to develop a better product mix for this sector. To improve the business, LIC should emphasis on the international market also. To increase the life insurance fund LIC should cut the management expenses. To fulfill the responsibility towards the society LIC should invest in infrastructure and social security as per IRDA guidelines. Owing to intense competition with private sector, LIC should adopt aggressive marketing strategies. LIC should develop insurance products including group policies to cater to different categories. LIC should conduct more extensive market research
The industry presented a huge opportunity. Life insurance penetration, for instance, was at an abysmal 22% of the insurable population. However, private players have had to rise to many challenges. They were faced with attitudinal barriers towards the category and the perception that insurance was only a tax-saving tool. Insurance per se had lost it basic rationale: protection. It wasn’t surprising then that its potential lay frozen and unexploited. The challenge for private insurance players was to change the established category driver and get customers to evaluate life insurance as an investment-cum-protection tool.
This project provided funding, management, and stability to the insurance company during its time of rapid expansion. The National Commission of Social Protection runs the
The company has multiple standalone computing solutions and applications which it acquired through the purchase of provider companies. These systems are not fully integrated and are not compatible. They do not share data in real time making communication, access, and interoperability difficult. The current system does not provide a well designed and unified solution for customers. The different provider companies that XYZCorp has acquired currently have their own customer relationship management (CRM) systems. Currently, it is not possible to have interconnectivity and functionality between providers and external sources, causing customers to be unable to take advantage of and fully benefit from the range of services the company has to offer. Also, web technologies are not being used to their potential and backend applications are not integrated. A customer web portal, which can help to integrate services such as buying, selling, delivery, payment and overall customer support, is non-existent and a deterrent to overall consumer satisfaction and business growth.