...DELL SUPPLY CHAIN Green: Typical working of Dell's supply chain The role of SCM is becoming more and more important in today's business wold. SCM is today considrered as a source of competence and innovation. Supply chain management has the objective to have the right products in the right quantities at the right time at minimal cost Dell SC have moved to a more integrated and strategic approach. The key element of his successful business model of the company is its supply chain management. The core elements of Dell’s business model are its direct sales model, usually referred as “direct model”, and the build-to-order strategy. From its very first steps, the direct sales model was adopted: At the beginning computers were sold over the phone and they were built according to the customers specifications. After a short break of using the retail channel from 1990 to 1994, Dell returned to its direct model and grew rapidly. The direct model refers to the fact that Dell does not use the retails channel,wholesaler or distributor but sells its PCs directly to customers through its website. Dell’s Direct Distribution Channel This way it creates a direct relationship with each individual customer.This direct relationship “creates valuable information” about the customer, thus Dell knows who the end users are, what they have bought from Dell and what their preferences are. This “provides Dell with a wealth of marketing and product development information ...
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...m BUSINESS PROCESS AUTOMATION IN RETAIL The retail industry is facing sweeping and unprecedented change. Customers’ expectations grow higher, economic pressures require them to do more with less, and each day new competitors appear. Responding to that rapid pace of change, retailers tell us, is both their biggest challenge and their biggest opportunity. Retailers who can adapt to change can make intelligent, fast decisions; find new markets to exploit; and constantly improve their products, services, and operations. But retailers don’t have a switch to flip that turns them into supersmart, super-adaptable businesses. Hoping to find that switch, they often turn to technology, looking for some magic to help them navigate a changing business environment. However, technology by itself is not the solution. Any discussion about generating a positive impact for the business should first center on how to empower people with effective solutions that deliver results. A “connected retailer” not only leverages a flexible, economical technology platform that drives results, but also focuses primarily on its greatest asset: people empowered by the right solutions to act on the right information at the right time. To enable your organization’s people assets to extend their potential through the use of software, Microsoft delivers agile and adaptive solutions for business process automation (BPA). BPA solutions provide the tools, technologies, and infrastructure to automate complex business processes...
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...Name: Instructor: Marketing and Distribution Abstract This paper emphases on the promotion and distribution of women clothes. It will give ways on how the product will be distributed in order to reach to the end user. Women clothes usually have high demand and with a good system of distribution, the end user can be reached without any delays. The paper will also determine which channel members will be used in distributing the women clothes in order to avoid disappointments. The target market will also be identified and the channels of distribution to be used to reach the target market. Introduction In the realm of ladies' retail attire, knowing one's product is a prerequisite for effective deals. A far-reaching knowledge of the items, designers, materials, choices and adornments in a retail outlet conveys aides guarantee the client of supplier's capability to help. A working information of one's rival, new fashions, different designers and current patterns additionally helps in answering inquiries, offering recommendations or guiding the client in the right bearing. There is a requirement for one to know their clients when managing ladies garments. While offering garments to ladies may appear to show a solitary sort of client, this is not the truth. Female buyers can fall into numerous buying profiles, in view of variables, for example, pay level, disposable pay, age, ethnicity, training, social...
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...delivering goods, the types of transport is going to be Rail, Road, Air, Water for example rivers, ocean cargo and canals and People. Storing is about where the goods are going to come from and where they are going to be stored. Selling is going to be where you are going to sell the goods Distribution Channel Distribution channel is the chain of individuals and organisations involved in getting a product or service from the producer to the consumer. Distribution channels are also known as marketing channels or marketing distribution channels in this context, the individuals and organizations are known as intermediaries; channels are categorised according to the number of intermediaries between the producer and the end user. A direct marketing channel, for example, which has no intermediaries between the producer and the consumer, is known as a level zero channels. http://searchitchannel.techtarget.com/definition/distribution-channel Distribution Process Supply Chain A supply chain is the path leading from the raw materials a company uses, through manufacturing, distribution and selling until they reach the customer. So for a hotel, a supply chain would be the stages that you the organisation go through to deliver catering or other amenities to the guests, for example Advantages: The benefit of channel 1 is that it has two intermediary levels in it which are wholesalers and retailers. The products that are manufactured or produced are sold to wholesalers in large quantities...
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...system comprises of the producer, wholesaler and retailer acting as a unified system. One channel member, the channel captain owns the members and has so much power that they all cooperate. It arose as a result of strong channel member’s attempts to control channel behaviour. There are three types of VMS: CORPORATE, ADMINISTERED AND CONTRACTUAL. CORPORATE VMS: A corporate VMS combines successive stages of production and distribution under single ownership. For example Sears obtains over 50% of the goods it sells from companies that it partly or wholly owns. ADMINISTERED VMS: An administered VMS coordinates successive stages of production and distribution through the size and power of one of the members. The most advanced supply-distributor arrangement for administered VMSs involve distribution programming, which can be defined as building a planed, professionally managed, vertical marketing system that meets the needs of both the manufacture and...
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...| Issue 6 Omni-Channel Supply Chain: From Backend to Forefront Foreword Pratik Pal President & Global Head Retail, CPG, Travel, Transportation & Hospitality Welcome to the sixth edition of Forum, the TCS Retail Thought Leadership journal. In this issue, we present our perspective on the changes shaping the supply chain of tomorrow. Retailers all over the world are making the transition from multichannel to omni-channel. The key to delivering the ‘order anywhere, fulfill anywhere’ promise is the supply chain. Supply chain is poised to become the key influencer of the interconnected customer experience. Based on my interactions with leading retailers across the world, it is my view that the battle for omni-channel supremacy will be fought and won on the grounds of supply chain. Retailers across the world are focused on re-architecting and recalibrating their supply chains while maintaining the delicate balance between customer experience and profitability. While earlier, significant investments were directed toward digital customer engagement, in the times ahead, investments will predominantly focus on supply chain re-imagination. In this edition, we discuss the prominent challenges and the response needed across key areas spanning the entire value chain as well as the building blocks for enabling omni-channel supply chain. The ‘plan-buy-make–move–sell’ value chain is no more linear. While the ’sell’ component of the value chain can now be executed by any...
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...1. Examine and analysis Dell’s Direct Model and its basic working and success and future challenges. Dell’s Direct Model Dell has been following it’s unique direct build-to-order sales model for more than 20 years. Customers can plan their own configuration and place orders directly with company via the phone or a web site. Over the years Dell supply chain efficiencies and direct sales gave it a competitive advantage. Dell has also leveraged JIT principle to make its manufacturing process success. Dell’s approach to JIT is different in that they leverage their suppliers to achieve the JIT goal. They are also unique in that Dell is able to provide exceptionally short lead times to their customers by forcing their suppliers to carry inventory instead of carrying it themselves and then demanding (and receiving) short lead time on components so that products can be simply assembled by Dell quickly and then shipped to the customers. Characteristics of direct model * Eliminate costs and risks of carrying large finished goods inventories * High velocity * Low-cost distribution * Direct customer relationship * Build-to-order * Just-in-time manufacturing * Products and Services aimed at specific market segments * Reduced channel costs: from 13.5%-15.5% to 2% of product revenue * Latest Technology was introduced faster than indirect channels * Dell can use IT to directly control its value chain, set quality measures and monitor in...
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...OMNICHANNEL SUPPLY CHAIN UK RETAILER JOHN LEWIS Case study based on CSCMP’s Supply Chain Quarterly Quarter 2, 2104 And Drapersonline.com October 2013 To maintain its lead in omnichannel retailing, UK retailer John Lewis has adopted a very modern strategy: converting to "hybrid" DCs that fill orders for both retail stores and online sales. London-based retailer The John Lewis Partnership fared exceptionally well during last year's Christmas selling season. For the five weeks leading up to Christmas its total sales, in stores and online, amounted to £734 million—a 7.2-percent increase from the same period the previous year. Although in 1 store sales rose only slightly, online sales jumped by 22.6 percent compared to the same period the year before. As the December sales results show, John Lewis has been very successful with its omnichannel strategy. To maintain its leadership in omnichannel retailing—which allows consumers to buy, take delivery, and make returns when and where they choose—the company has been redesigning its supply chain. As part of that initiative, John Lewis has begun restructuring its distribution center (DC) network to support a shift to an in-store replenishment strategy that will require major changes in the way it picks, delivers, and stores the products it sells. Customer interactions According to Head of supply chain development Berangere Michel, omnichannel is about allowing customers to interact with them anyway they choose at any...
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...Individual Project MKTG 205 – Principles of Marketing 11/26/2012 Abstract Throughout this paper terms like indirect and direct distribution channel levels will be discussed and defined as well as horizontal, vertical, multichannel, and conventional marketing systems. Then the market needs to market One-A-Day multivitamin will be broken down to help understand what needs to take place to sell this product. In the end the type of channel used and an explanation will follow to show how and why this route was chosen. One-A-Day Multivitamins Introduction Deciding on how to market a product is much harder than one thinks. Normally people think it is easy and all there is to it is to just advertise the product and make sales. There is way more to it than just that and most of which will be discussed throughout this paper. Hopefully after reading this someone can understand more about what it takes to actually market a product and have success in doing so. Overview of Distribution Channels There are two main types of channel levels of distribution and they are direct and indirect. Direct distribution is when products are being sold straight to consumers and eliminate the middle man. (Spencer and Schendel, 1964) One of the great advantages of this is that it cuts out any extra charges that may apply when intermediaries are used. Also, with direct distribution one is able to stay in contact directly with the consumer and build relationships. There is also a chance that...
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... Abstract This paper gives an overview of distribution channels; Channel Levels such as: Direct vs. Indirect Channel Organizations such as Conventional Vertical, Horizontal and Multichannel Marketing Systems. It also, explains my target market needs at the here is also a brief description of how many channel members the company needs and why they need them. Overview of Distribution Channels The success of any business depends upon channel levels for getting products to market. First there is a direct channel and second there is an in-direct channel, both needs to exist for this to happen. The majority of companies can maintain their own using wholesalers and dealers. Which is a three channel system any more than three moves the company to in-direct marketers. This small Mexican food restaurant only requires the three channel system to operate with a positive cash flow. The distribution channels are for larger scale restaurants that distribute a Large amount of product. Products or services that are sold directly to the customers are direct channels which eliminate the middle man so to speak because there are no other companies that cut into the profit margin. When the business does not sell products directly to the consumer this is referred to as an in-direct channel. These methods of distribution have improved over the years due to technology and computers. Analyze Target Market’s...
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...American Intercontinental University Unit 3 Individual Project MKTG 205 – Principles of Marketing 09/14/2015 Abstract This paper highlights on the distribution and techniques of children’s clothes. This paper will highlight and give examples to show the distribution of the product in order to be placed in the customer’s hands. Children clothes are a great want and with excellent distribution techniques. The product can reach the consumer with no problems. Children’s Clothing Introduction In the field of children’s clothing, knowing your product is essential for productive sales. In having a wide variety of items, designers, clothing, and choices in a retail store guarantees the customer of the distributor's ability to help. By obtaining information about other marketer’s helps in answering questions, by giving guides to the customer in the right direction of which clothing to buy for their children. There are requirements in order to get to know what the customers are looking for when shopping for kids clothing. Buyers can come in numerous forms of buying profiles, for example, pay level, age, ethnicity, training, social status, geographic area and other life situations. In order to know what an ordinary buyer likes or would want for their children, would take some time and energy to inquire what the average buyer is like, what they purchase, the type of clothing they deem purchasable for children and the geographic area in which they live. For example...
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...Marketing Channels and Supply Chain Management Chapter Objectives • Explain why companies use distribution channels and discuss the functions these channels perform. • Discuss how channel members interact and how they organize to perform the work of the channel. • Identify the major channel alternatives open to a company. • Explain how companies select, motivate, and evaluate channel members. • Discuss the nature and importance of marketing logistics and integrated supply chain management. Chapter Overview This chapter covers the important topics of supply chain management. Supply chains consist of both upstream and downstream partners, including suppliers, intermediaries, and even intermediary customers. The term value delivery network expands on the limited nature of "supply chain." It consists of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system. The chapter focuses on marketing channels--the downstream side of the value delivery network. A company's channel decisions directly affect every other marketing decision. And because distribution channel decisions often involve long-term commitments to other firms, management must define its channels carefully, with an eye on tomorrow's likely selling environment as well as today's. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use...
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... Satisfying Marketing Opportunities: Products and Services | Chapter 10: Developing New Products and Services Chapter 11: Managing Successful Products, Services, and Brands Chapter 12: Services Marketing | Course Project—Draft Marketing Plan Graded Discussion Topics Quiz | Week 5 TCOs 2, 3, 5, 6, 7 Satisfying Marketing Opportunities: Pricing | Chapter 13: Building the Price Foundation Chapter 14: Arriving at the Final PriceAppendix B Financial Aspects of Marketing | Course Project—Price Strategy/Breakeven Analysis Graded Discussion Topics | Week 6 TCOs 1, 2, 4, 6 Satisfying Marketing Opportunities: Integrated Communications | Chapter 17: Integrated Marketing Communications and Direct Marketing Chapter 18: Advertising, Sales Promotion, and Public Relations Chapter 19: Using Social...
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...Marketing Channels and Supply Chain Management Chapter Objectives • Explain why companies use distribution channels and discuss the functions these channels perform. • Discuss how channel members interact and how they organize to perform the work of the channel. • Identify the major channel alternatives open to a company. • Explain how companies select, motivate, and evaluate channel members. • Discuss the nature and importance of marketing logistics and integrated supply chain management. Chapter Overview This chapter covers the important topics of supply chain management. Supply chains consist of both upstream and downstream partners, including suppliers, intermediaries, and even intermediary customers. The term value delivery network expands on the limited nature of "supply chain." It consists of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system. The chapter focuses on marketing channels--the downstream side of the value delivery network. A company's channel decisions directly affect every other marketing decision. And because distribution channel decisions often involve long-term commitments to other firms, management must define its channels carefully, with an eye on tomorrow's likely selling environment as well as today's. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use...
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...Ch10 Marketing Channels Supply Chinas and the Value Delivery Network Upstream: Supply raw materials, components, parts, information, finances, and expertise Downstream: Marketing channels towards customers, including wholesales and retailers, * Supply chain: make-and-sell view, which suggest productive inputs as starting point * Demand chain: Sense-and-respond view But sometimes it takes a step-by-step, linear view of purchase-production-consumption activities Value Delivery network: A network composed of company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value The Nature and Importance of Marketing Channels Marketing Channel (Distribution channel): A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user * Affect every other marketing decision * Use imaginative distribution systems * Involve long-term commitment to other firms How Channel Members Add Value * Give up some control over how and to whom to sell products * But they create greater efficiency in making goods available to target markets by better contacts, experience, specialization and scale of operation * Intermediaries reduce the amount of work by both producers and consumers * Transform assortments of products made by producers...
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