...Assignment 2: Choosing a Distributor Lori Rodeffer Strayer University HTM 250: Purchasing and Cost Control Dr. Madlyn M. Bonimy November 30, 2014 Choosing a Distributor Sysco Inc. is one of the leading distribution companies in the world. They are global leaders in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, and lodging establishments. Equipment and supplies for the foodservice and hospitality industries are also included in their list of products. Operating 193 distribution facilities, this company is able to service approximately 425,000 customers. For Fiscal Year 2013 that ended June 29, 2013, the company sales broke records with more than $44 billion in sales. The history of SYSCO is an extensive one that truly explains how this company was able to build itself up into the largest marketer and distributor of foodservice products in North America. SYSCO provides food and other products and services to 270,000 restaurants, schools, hospitals, nursing homes, hotels, businesses, and other organizations. Their 70 distribution facilities serving more than 150 of the largest cities in the continental United States and parts of Alaska and Canada make this feat possible. The company's line of products includes about 200,000 items, including fresh and frozen meats, seafood, poultry, fruits and vegetables, baked goods, paper and disposable items, chemical and janitorial products, beverages, dairy foods, and medical...
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...* Assignment 2: Choosing a Distributor Due Week 8 and worth 280 points * Today’s hospitality managers have many options when choosing a purchasing distributor for their business. These distributors range from large distribution firms that carry anything a hospitality company needs to small niche suppliers that specialize in a specific category of products. * For this assignment, you will choose one (1) major food / equipment distributor, either global, regional, or local (i.e., Sysco Foods Inc., U.S. Foods, Sherwood Food Distributors, or S&W Wholesale Foods), for restaurants and conduct an in-depth research study. * Write a five to six (5-6) page paper in which you: * Choose one (1) distributor company and provide a brief overview including: * a history of the company * the geographical areas that they serve * a high-level list of supplies they offer (by category) * the main competitors * Choose one (1) competitive distribution company and compare and contrast five (5) similar products (offered by both firms) in the areas of price, quality, and value. Create a table to represent the data. * Provide an overview of this company’s payment policy including: * the objective of payment policy * the costs of paying early * the costs of late payment * the mechanics of bill paying * discounting * Determine whether or not to choose this distributor as the main supplier for the restaurant chain you selected...
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...are purchased from approximately 375 different suppliers, which we can call them external suppliers, the first component of a company’s supply chain structure. Then, after the company’s internal functions, DIMCO sends its finished products to a central warehouse that supplies 10 regional distribution centers, which 6 are domestic and 4 are located outside of the US. Each one of these distribution centers supplies an average of 12 local distributors that each supplies an average of 35 retailers. DIMCO supply chain can be summarized by the figure below: 2. Discuss the advantages that DIMCO can gain by implementing supply chain management. Supply Chain Management is the vital business function that coordinates and manages all the activities of the supply chain linking suppliers, transporters, internal departments, third-party companies, and information systems. The advantages DIMCO can gain with supply chain management are coordinating the movement of goods through the supply chain from suppliers to manufacturers to distributors to the final customers; and sharing relevant and accurate information such as sales forecasts, sales data, and promotional campaigns among members of the chain. Is another advantage of implementing supply chain management the chance to avoid the called Bullwhip effect, which causes erratic replenishment orders placed on different levels in the supply chain that have no apparent link to final product demand. The greater the number of...
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...well as disappointment for the owners of the Windows phone, it has surely affected European customer base as well. Apps that run on Windows phone are much less than those that Android and IOS offer for their customers. This is a huge problem for Nokia, as apps are really important for the Smartphone user. Nokia’s devices are offered in different colours such as green, red and yellow so the customers can customize the phone by their preferences. The devices are differentiated in the product part of the marketing mix. However it does not become clear whether the products are targeting any particular customer group from the physical or non-physical features. Distribution strategy Nokia is getting its products to the market through distributors. It mainly sells its Smartphone trough Mobile operators. The company does not own shops in most of Europe, exception make UK. Nokia does not differentiate itself in this component of the marketing mix. Rapid market...
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...Conor Pierce, the distribution review is taken as yet another sign that the sleeping giant is about to awaken. Certainly the atmosphere at Nokia’s offices in London is anything but sleepy.Behind its sleek, minimalist Scandinavian façade, there is a distinctly industrial air about the place. James Kitto, Nokia UK’s head of retail sales, embodies this atmosphere, exuding a focused energy and dynamism. He is keen to make clear that this review is no window dressing operation. ‘We are reviewing the entirety of our distribution arrangements in the UK,’ he tells Mobile. Rapid market So what is driving this swingeing review? After all, it was barely three years ago that Nokia whittled its distributors down from eight to three – choosing Data Select and 20:20 Mobile as its b2c distributors and, for a while, Brightpoint as its b2b partner. Kitto says the move is partly driven by the pace of the industry. He explains: ‘It is very healthy, particularly as the market moves so rapidly, to invite partners and potential partners to talk about their capabilities and the way they see the marketplace. ‘Our last review was in 2008 and a huge amount has changed in that time in terms of smartphone volume share, convergence, types of hardware and new operating systems, so it is right and healthy to review the marketplace.’ Nokia UK is also out to spread its reach. Kitto says: ‘We want our distribution strategy to deliver Nokia’s mobile solutions...
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...Small business owners have defined success by quantity of distribution channels instead of the quality of distribution channels. They caught up in excitement of adding distributions channels network without calculating it would be profitable and productive for long term perspective of company. Andrew try to convinced for less number of profitable distributors instead of more in overhead supporting distributers. Due to they measured success by quantity, owners may engage in an ego issue. Small business owners compared their distributions to competitors for success and achievement. Due to such attitude, they always want to grow and expand distribution channels. He applied Pareto’s principle i.e. 80-20 rule to these distributors. It helps to realize that the majority of profit generate from minority of distribution channels. In other words, 80 percentages of profits generate from only 20 percent of distribution channels. It reminds to focus on the 20 percent that matters. Midwest company has around 800 distributors, if we applied Pareto principle only 160 distributors are profitable or might be less. Andrew’s arguments related to OM Quality Management concept. The Pareto principle applied is consistent with OM theory. Here it is applied for finding a profitable distribution channels whereas in OM, it is used for finding defects result from top categories. Basic concept of Pareto principle remains same. Small businesses have been heavily depends on a number of relationships...
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...Map the Supply Chain Map the Supply Chain In choosing a specific industry to map out the supply chain, the idea of a beverage company seemed appropriate. To narrow down the selections amongst all of the competitors would be difficult to say the least, however focusing on the beer market as a whole would allow an observational look at the process of the supply chain for most beer manufacturers. The vagueness of not pointing out a specific brand also results from the secrecy most brand names keep around their business practices and a lack of researchable information made available online. The Manufacturer Overall the supply chain is everything included in the management of getting the goods, in this case, the beer to the consumer. As with most production processes the manufacturing of beer begins with gathering the raw materials. The raw materials necessary for the production of beer are barley, yeast, hops, and water. Therefore, manufacturers must maintain a partnership with farmers and suppliers that produce the necessary ingredients and also ensure the water supply utilized in the process is untainted. Furthermore, beer producers must maintain sustainability ensuring the ingredients are available well into the future. Once the ingredients are accounted for, and the demand for beer, which is relatively high around the world, is determined, the production begins. The production process can take on average thirty days to produce a batch of beer ("Anheuser-Busch"...
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...Channel Challenges - Channel Microsystems Keller Graduate School of Management Devry University Channels of Distribution What are the pros and cons of choosing this distributor? When selecting a channel partner, SPEAR, an acronym that describes important selection criteria, is often used to target the best candidate during a selection process. Aridi Graphics should evaluate each of the components of SPEAR in selecting a Western Europe distributor. The first element of SPEAR outlines the importance of selecting an intermediary who is knowledgeable of the Sales environment. In this case, the candidate identified at the MacWorld exposition is an ideal intermediary from a geographic perspective. This candidate has knowledge of the Western Europe geography as well as cultural factors that may impact software sales in the region. This knowledge may benefit Aridi through rapid market penetration and reduced start up cost. The next component of SPEAR, Product factors describes the level of knowledge that the intermediary may have with regards to the product and its sales requirements. The information provided in the channel challenge informs us that Aridi met this individual during the MacWorld exposition which indicates common industry interest. It’s important that during the interview process questions are posed to address and confirm the prospects level of product knowledge about the software solution, its competitors and advantages/disadvantages. This area...
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...fad or having price points so high they could alienate potential customers. If she positions Clocky as a Need product, she may raise consumer expectations, and would have to shift some of her limited resources to making sure Clocky was able to consistently deliver on its promise as a more effective alarm clock. By first deciding how to position the product in the market, Nanda can then decide on the most appropriate way to distribute, manufacture and market Clocky. It is also important to note that targeting either of the Fun or Need segment would not preclude her from selling to the other segment as well. Distribution: Choosing a distribution partner was important for Nanda because it would determine how the product would be delivered to the market and could have the greatest effect on relieving her financial pressure. A mid- to large-size distributor (such as Target or Wal-Mart) could help with her financial situation (by providing an LC) but there is potential for losing control of her product in terms of how it is marketed or developed in the future. TV sales are an option but presented the risk of marginalizing the product. Upscale retailers (Sharper Image, Brookstone) or smaller boutiques are an option as well, but they could drive up the price of the product...
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...to Build a Text Distribution List on Your iPhone Channel management is a technique for selecting the most efficient channels or routes to market for your products and services, and deriving the best results from those channels by applying appropriate financial, marketing or training resources. Channels to market include such distribution methods as direct sales from a website, sales force or call center and indirect sales through distributors or retailers. You analyze the effects of channel management by measuring factors such as changes in your share of the market or the volume of sales via certain channels, the changing costs of going to market through certain channels, and varying levels of customer satisfaction achieved by certain channels. Ads by Google Internet Degree programs Earn your Degree via the Internet no class attendance. www.aiu.edu Market Share By selecting the most effective channel to market and focusing resources on that channel, you can increase market share. If you market your products through retailers or distributors, for example, and you appoint a manager to support your channel customers, you...
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...By examining all the relevant costs and revenues Guillermo can decide which alternative to choose and, therefore, to obtain the greatest contribution possible. The company will use the contribution to pay the unavoidable costs. The unavoidable costs will remain the same regardless of any decision, so the key is picking the alternative that will contribute the most toward paying off these costs. Depreciation, Expected revenue, and opportunity cost must all be assessed by the Guillermo so that the best alternative is chosen. Opportunity cost applies to a resource that a company already owns or that is has already committed to purchase. The opportunity cost in this situation is the decision between what could be profited from choosing to become a distributor as opposed to retaining current company status. The depreciation must also be calculated because...
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...different styles of furniture. Labor is inexpensive and Guillermo has priced his furniture for the quality of the design. As time pass there changes in the business and Guillermo has seen this effect his business. By all the changes that where happening Guillermo saw his profits go down and cost go up. Now Guillermo has to look at his choices he has to make to be able to compete (University of Phoenix, 2013). Choices Guillermo learned that there was a competitor overseas that is using high-tech approach. By using this high-tech approach competitor is able to make furniture to the exact specifications and at low prices. Guillermo looks into this choice to see what changes it would create. The second option for Guillermo is to work as distributor of furniture and keep some of high end custom work. Guillermo can also create the coating for flame-retardant and add this to his furniture (University of Phoenix, 2013). High-Tech Choice By Guillermo using the high-tech choice he would be able to use a computer controlled laser to create exact cuts in the wood. Norway high-tech company’s equipment uses highly automated and uses little labor. Since robots perform most of the precise movement and assembly functions. The cost to switch to this method would be big but it would reduce the cost for labor needed for production. This method also makes production go by faster, and would create a 24-hour environment. By using the method the extra shifts would be cover by the reduction of labor...
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...development, human resource development (HRD) Case Analysis: Hershey Aligns Training with Strategy The Hershey Company, headquartered in Hershey, Pennsylvania is a leading North American manufacturer of chocolate and confectionary grocery goods. Hershey currently sits on the Fortune 500 and operates in over ninety countries. In 2014, Hershey's earnings exceeded 7.4 billion dollars. Although today, Hershey is an international manufacturing powerhouse, back in 1982 their future was not very optimistic; in fact, Hershey was on the verge of being sold. Hershey realized in order to increase their revenue and create a sustainable company, major changes needed to be made. Hershey focused their efforts on analyzing and fixing their distributor marketing strategy (which included its trade funding allocations). This case analyzes Hershey's trade funding strategy as (outlined by their senior leadership) and the steps they took to improve this program. A Proactive Hershey When senior executives at Hershey realized their current trade funding program did not best serve their distributor's needs, they immediately looked for opportunities to improve upon their business relationships, sales, and accountability held with them. By utilizing data from its external customers (including promotional funding allocations and customer satisfaction metrics) and taking internal feedback regarding sales and marketing practices into account, Hershey's senior executives chose to implement...
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...will be locally or nationally branded such as Frito-Lay, Coca-Cola, Jolly Green Giant, Charmin, Stouffer's, etc. Operational Plan Production Our products and services comes from local home growers along with other distributors Location and Site Selection There are several aspects to consider in determining a location. The store should be accessible to potential customers with ample parking. The vicinity to other businesses and traffic are both important factors. The is a desire to pay our rent for the business whether we decide to purchase or sign a lease term agreement. The final considerations in choosing our location will be based on (1) the community in which to locate and (2) the specific site within the community. Selecting a site location for a grocery store is extremely important for our success. The location for our retail operation can cause the business to become a success or failure. We would be most incline to position our store toward the high traffic area with hopes of producing a constant flow of revenue. Though, we look for high traffic area to establish our location that along will not be our main factor in generating revenue. Legal Environment Personnel Food Depot supermarket is a retailer distributor that will employ a staff of 100 people’s based on the size of the store in the beginning of its development within the community. Our business would corporate in the...
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...(a) To what extent can MontGras control its own market position, as opposed to being dominated 7by the country-of-origin effect, and be perceived as a “Chilean Wine”? Changing the overall image of its companies wines are added to its market positioning strategy. Even though the branding as a Chilean Wine is easily applied onto MontGras, there are many factors in its control which can make sure that the company dominates the market by having a bigger share as it wants to. MontGras though being smaller than some Chilean wineries, it has been able to stand out due to its interest in high quality wines. The company wants to establish itself as the ‘low price yet high quality’ provider of wines. This is directly related to the seeds, the soil and the production methods. The company was able to affirm that its resources are on par with other high class wineries in one way or the other. Fortunately, studies also show an increase in the number of consumers for the higher quality wines (Reserva) and a minor decline in the demand for the lesser quality (Varietal) wines. The marketing has to be different for every region. Most people with very little information about wines conveniently relate price with quality. Chilean wines thereby being priced lower than other brands were inevitably being considered not so superior in quality. Since that is not the case, MontGras is trying to change its current reputation. It wants to emphasise on its higher end wines such as the Reservas and the...
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