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Audio Duplication Services

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BUS 8350-131001 Supply Chain Management

Audio duplication services

Case Analysis

Introduction
Audio duplication industry is considered one of the major parts of the music business. It is a five billion dollars market. Audio Duplication Services known as ADS is one of the major working companies in the audio duplication industry. ADS main core business is duplicating and distributing cassette and compact disc. Recently this field faced many challenges not limited to changing the supply strategy. In this paper we are going to study ADS case.
Overview
Record companies use ADS services in order to duplicate and distribute compact disc and cassette. They constitute the main customers base for ADS, who distributes to large amount of retailers such music stores, Wal-Mart, Target, Kmart, and electronic stores. ADS market share is almost 20% of the five billion dollars market.
ADS usually ships products to the retailer distribution centers and the retailer takes the responsibility of the last part of the supply chain. Retailers deliver products to their own stores. A problem arose when retailers asked record companies to take the responsibility of managing the inventory in stores. Retailers want record companies to own the inventory; the price will be transferred to those companies when goods are sold. On the other hand retailers provide the companies data from point of sales. The system is called VMI, record companies required ADS to help them managing the new system and logistics. Under the system it is up to record companies to decide the exposed quantity, and delivery method and time. Record companies ask ADS help, ADS has new requirement now, it has to deliver orders to stores and not to the distribution centers.
Challenges
ADS should now face new challenge that it is not in its expertise. In addition of the new supply requirement,

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