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Nature and role of distribution channels
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BuildDirect, an e-commerce organization in the home improvement division, began with only two employees. However, they experienced rapid growth in less than a decade. Sustaining the original culture, vision, and mission can become a challenging endeavor for organizations like BuildDirect to overcome through periods of expansion. In order for BuildDirect to maintain their original vision, they must a) hire individuals who fit the skills and culture, b) have leadership role model the culture and behaviors they wish to see in the organization, and c) continue to promote and encourage continuous learning and innovation.
About BuildDirect
Background
BuildDirect was co-founded in 1999 by Jeff Booth, President and CEO, and Robert Banks, Executive
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The traditional supply chain model flowed from the manufacturer to the exporter, wholesaler, wholesale distributor, retailer, and then finally to the end buyer. This model created increased costs to the end buyer due to the number of processes before the product was given to the customer. Jeff Booth created a company that would remove redundancies in the chain flow to move the product directly from the manufacturer to BuildDirect and then to the end buyer to remove the traditional supply chain inefficiencies (Sutton, Rao & Hinds, …show more content…
In the past, they have been sensitive to these type of factors. is sensitive to external market changes. First of two examples can be seen on 9/11, where this national crisis caused disruptions to many businesses. When the markets stopped, BuildDirect was unable to secure the necessary investments to stay open. They had a CAD $15 million investments with their bankers that was not able to go through due to the market crash. Due to the lack of investment from the banks, BuildDirect was required to lay off 20 of 32 employees. They had to take money from family, friends, and issuing private offer
Target must compete vigorously and fairly in the marketplace using our independent judgment to make the best decisions for the Company.
Over the years role of supply chain has been altered. The distribution has switched from shipping from one focal point, now technology has shortened the process that will to ship directly from the manufacture to the customer that will tie in to the distribution channels. Though distribution is costly, a person would think all the risk will be eliminated. Contrarily to what people may think, distribution have many risk it must account. When the product is unloaded onto the truck, it’s the trucker sole responsibility to ensure the customer receive their product. Distribution initially start at beginning when it is
Design-Build is overall a better more improved than the tradition delivery method, Design-Bid-Build. The rewards are ultimately higher than the risks with Design-Build. The duration of the project is shorter and the quality of the project stays the same. Design-Build allows for better communication when everything goes through the contractor, design and the owner can easily keep in contact. The contractor has a higher risk when dealing in the financial department. But the owner has fewer responsibilities. Each project is unique and has its own challenges so understanding the delivery methods will be beneficial.
Case Study of The Home Depot Preface This Essentials of Strategic Management assignment has been made by three persons which have been working together and individually to finish the assignment properly and in time. Secondly, we would like to thank the company whose websites we were able to visit and use, to get additional information that we could use for leading the assignment of Home Depot to a successful ending. We can say, that it was a pleasure to work on this assignment and would, in the third place, like to thank each other. The persons who worked on this assignment, for the effort and time that is put in the assignment, that brought us to this finished version.
In summary, it's no way around these forces there going to happen and exist in the business world. If you want to be a successful business adapt to these forces and understand each and everyone. Be prepared for the events and have proper responses to combat them and deal with theses factors successfully.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Based on the Miles and Snow strategy typology, Dollar Tree would be categorized as a prospector and an analyzer. Dollar Tree initially started off as a prospector when it was created as an off-shoot of the retail chain K &K Toys (Parnell, 2014). Prospectors focus on intrapreneurship, which involves the creation of new business ventures within an existing organization (Parnell, 2014). When K & K Toys was divested in 1991, it was done so in order to focus their energies on developing the concept of the dollar store, which in turn gave them the first mover advantage for being first in that particular market (Parnell, 2014). Just as prospector companies places priority on new product and service development to meet the changing needs and
External Environment and Competitive Position: Any business and its corresponding market position are affected by a change in the economy, government policies, community it serves, market segment, and the corresponding industry. These are external macro environment factors and the competitive nature has effect on the business. It is therefore necessary for any business to monitor the changes in the business segment and forecast the trend as part of its strategic planning.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Bruce,Daly and Towers,(2004)said that the apparel industry is highly diverse and heterogeneous.So the supply chain is complex.And also the manufacturers move on to the sourcing components from overseas.From that the firm can reduce waste,the labor cost,time compression.(Anon,2016) demonstrated that the retailers of the apparel industry have to deal with manufactures with the centralized buying and prices,quality and delivery schedules.And also the writer point out that there are intermediaries like export and import agencies who are play major role in supply chain.
In conclusion, Built to Last gives many examples of companies that have focused more on building an organization rather than making a profit. Many of the most successful companies have gotten to that point through a passionate commitment to a core ideology. They continually look to preserve that core, while creatively seeking ways to improve and stimulate progress. These are the timeless management principles that have worked for visionary companies of the past, present, and future. According to Collins and Porras, "one of the most important steps you can take in building a visionary company is not an action, but a shift in perspective" (Collins & Porras, 2002). To be built to last, you have to be built to change.
Without which, a business organization or company will find it hard to efficiently use its raw materials so that it is able to provide its consumers the goods and services it seeks to produce. Aside from that, it is vital that business corporations are able to not only have the right products, but also to have the appropriate quantity in the right time and place. When corporations are able to use effective strategies, consumers become motivated to avail and patronize their products. To create customer value, supply chain is indispensable. Supply chain has three functions: 1) the supply of materials to a manufacturer; 2) the process of manufacturing itself; and 3) the distribution of goods to the customers (Canadian Supply Chain Sector Council, 2016). Hence, it is through a supply chain management that business operations are planned and managed
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods