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Questions on supply chain management
Aspects of supply chain management
Questions on supply chain management
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However, Sehgal mentioned, “All supply chains must be a combination of push and pull processes -- purely push or purely pull supply chains exist only in theory” (2009). The above figure shows guidance on how the push-pull boundary functioned in a distribution channel. For this channel of distribution that Valley Steel is in, I would say the push-pull boundary lies between the retailers and Valley Steel itself. The pull boundary would apply to retailers in this channel of distribution because they react directly to the demand of the customers itself. Valley Steel is in both push and pull boundary because they serve both to the retailers and to end users. However, based on the low amount of end users that Valley Steel sells to, Valley Steel is …show more content…
According to Sehgal, “The push/pull decisions afford a balance between the responsiveness (agility) and cost (lean) (2009)”. Pull systems must be responsive to be effective; push systems are generally more cost effective. Retailers have response immediately to consumer demands but wholesalers like Valley Steel can hold inventories and generate economies of scale to reduce cost.
This push-pull boundary will most likely change for if Valley Steel is getting more end users as their customers instead of retailers or distributors. Valley Steel will then have to react directly to consumer’s demand, which is a primary factor of the pull-boundary. If this situation does occur, Valley Steel would then have more power in determining the amount of supplies they should get from their suppliers instead of getting forecasted amount of supplies from their suppliers. However, Valley Steel will have to bare the excess in demand from the customer that leads to loss of opportunity cost if the company does not have capacity to fulfill the demand. The benefits that they once obtained from the economies of scale would also reduce since they cannot scale up the productions and
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Inventory would no longer be a good option for them since holding inventory in a rather quick selling environment is deem bad for the company, showing inability to sell based on consumer demand and has to pay inventory cost. They would also need to implement and focus more on consumer demand, increasing the need to hire market researchers and so on to evaluate the right amount of products to supply. Great customer service will be required in order to satisfy large amount of end users rather than just dealing with a few B2B
Gobias Industries is a company that is seeking to promote diversity amongst the organization and strives to be the best. However, it is seen that the company lacks certain criteria that may negatively impact them to the extent where they would need to shut down their facilities. The main issues Gobias Industries has faced is the harsh conditions employees have to work in that are most definitely safety hazards, Sexual harassment, and low retention rate. It is clear that Jim, Maria, Tracy and most of the employees are not satisfied with their experience with the company indicating that Gobias Industries must do something about it as soon as possible before they decide to leave as well. For this, we have analyzed the three main problems with
Point 2: What this area was like before the encampment, why was this area so important during the Revolutionary War: (Location to Philadelphia, supply lines, and topography of the land.)
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
Despite the negative encounters of Andrew Carnegie’s Steel Company, the exploration and exchange of Carnegie Steel is that the steel was cheap. This had a positive impact on the United States because steel fed national growth, steel meant more jobs, national prestige, and a higher quality of life for
can expand through marketing ideas and ways the company can save money by not stocking up on as
A second alternative is a shift in marketing focus towards a new target segment and improved product. A strong and unified market strategy can strengthen synergies through new collaboration. Given the rapid growth, it is essential to reach influential segments that can create a mass appeal over the broader market. Doing so, will also require improving the quality of their product by focusing more on programming and less on hardware sales. A possible benefit would be creating a niche market that enables a rapid brand expansion. On the other hand, a possible drawback would be not being able to handle rapid
Amazon is the biggest online store in the world; since its creation in 1995, Amazon has adopted improvements throughout its processes changing considerately. This reports describes the changes adopted by Amazon. In addition, this report generates a diagnosis of each step and makes a deep analysis of the decision makings by amazon based on three specific topic; 1) when Amazon managed inventory internally; 2) when Amazon decided to outsource inventory management and lastly when amazon decided to sell products of competing retailers on its site.
More competition in lower trade as other firms will try to convince that their product is better than K2-products.
Vertical integration may not even be necessary to exert control. e.g. Marks and Spencer. The textile supplier of corah (knitwear) and IJ Dewhirst (suits, coats, skirts) and SR Gent (blouse, skirts, nightwear) each send in excess of 75% of their output to Marks and Spencer. Marks and Spencer can thus exert control and restrict profit margins, aim for stockless purchasing and insist on frequent batch delivery.
In the early part of this century was a time when industry was booming with growth around the installation of major railroads. With this growth came the transatlantic cable, the telegraph, and a whole lot of steel. Steel would be needed in the construction of these new transportation systems and communications were now possible between businesses and industries. (Wren, 2005)
Analysis: With one of their main issues being sustained profitability, Wal*Mart is at a critical time in their life. They are no longer the hero, a place commonly reserved for competitors striving to be number one, because Wal*Mart is number one. No one can debate how effective they have been in getting here. Through their focus on superior technology and low cost leadership, Wal*Mart reigned supreme. They are redefining Porter’s five forces model in the discount retailing industry, and are in the enviable position of having first mover’s advantage. Yet this blessing is also a curse. By virtue of their efficient, effective system and its proven success, companies like Kmart and Target are watching closely and both emulating and improving upon this system. An analysis of the five forces model will show Wal*Mart’s main competitive advantages in supplier power and barriers to entry. A look into their distribution centers and how they have been instrumental in reducing supplier power will be followed by an analysis of how effective first mover advantage has been and where they must take it next.
They use a strategy known as cross docking. Cross docking is the process of unloading materials from an incoming truck or trailer, then loading these materials directly onto outbound trucks, delivering the good directly to customers. This creates a remarkably proficient supply chain, of delivering manufactured goods to customers at a much faster pace. Supply chain managers are the group of employees responsible for the process of delivering a good down the chain from manufacturer, to intermediaries, to retailers, to consumers. The cross docking process excludes a few steps, raising Walmart’s efficacy levels way above that of their competitors. Cross docking goes right from the manufacturer or supplier directly to the consumer, eliminating the distribution center and retail store. The only way to make this possible was to promise specific delivery times, and upholding these promises. This method has proven very beneficial in Walmart’s sales and is another reason why so many consumers stay loyal to company. The process of cross docking lead to centralized decision control of merchandising, pricing and promotions, shifting from corporate levels, causing the supply chain into a demand chain. Customers now pulled their goods when needed, as opposed to retail stores pushing the good on potential buyers. When these customers pull an abundance of a specific goods, Walmart unlike any of its
Harley-Davidson institutes a pull strategy in the promotion of the FXDS-CONV Dyna Convertible. Due to the limited number of dealerships (for example, there are only five in Nashville and the surrounding communities) customers must actively seek out a location to purchase this bike. Also, because so many customers decide to customize their Dyna Convertibles, they must place a special order with the dealer, who in turn must contact intermediaries along the distribution channel in order to satisfy the customer. Further, the fact that demand for Harley motorcycles far exceeds the supply indicates that a pull strategy is in place.
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
Steelmaking is a process in which raw materials such as iron and ferrous scrap are used to form steel. This process improves the quality of steel, giving it specific characteristics to suit the needs of diverse industries. Due to the availability, strength, and relatively inexpensive production cost, steel has become one of our world’s most valuable resources. The production of steel directly effects our lives nearly every day. Transportation on our railways, erecting buildings, manufacturing appliances and tools, canned food, and computers are just a few applications of steel in modern life.