Target is a multi-location retailer entity with many store fronts located in select markets across the United States. I would suggest that Target supply chains are a mix of vertical chains, where Target has control over the end to end supply chain, and horizontal supply chains, where Target must work and communicate with other suppliers to assure products that customers want will be stocked on Target’s shelves. One might ask, why would target have to work with suppliers in a horizontal supply chain, and the obvious answer could be that there are many outlets some manufacturers can sell their good through, Target is one of many options, and being too assertive, Target may lose opportunities to grow client base and loyalty if certain items cannot be found on their shelves. Items that are sold in stores are most likely delivered Target’s own distribution centers. These center’s provide Target the opportunity to purchase more products from other suppliers and those distribution centers can ship precisely what a store may need, as opposed to having to purchase certain quantities that could result in over stock and reserve for scrap charges for unsold product.
One the other hand, the way in which Domino’s management has structured their supply chain means there are less chances to be negatively affected by outside supplier incapability. Franchise stores have the option to find their own suppliers however chose to source from Domino’s own supply chain centers (dominos report). This strategy allows them to save time and capital as they do not need to search and experiment with new suppliers (Gage). However Domino’s have encountered stock management problems. It is difficult to manage the increasing types of ingredients, (dominos report) as consumers want more variety.
The B2C marketing is a lot less complex compared to B2B because they only deal with individual customers and have a target market. While B2B companies must deal with smaller number of suppliers which want the product or service to their standard, the product then must go through many levels of authority in the company before a decision is made causing a lot of time being taken up in B2B markets. An Example is Musgraves Group supplying to Centra, this would be a long process because they must go through costings, food regulations, pricing and transportation stated in Musgravegroup.com. (2016). CRM technology could help speed up the complex decision making by managing the supply chain more efficiently so a decision is made a lot faster saving the B2B companies
3. Competitive Strategy of the Company 3.1 Value Proposition Tesco provides retail services with lowest possible price and best quality by primarily focus on analyzing the customer behavior and needs. It believes in providing a unique one stop shopping experience to its customers by enhancing its customer database and analyzing the same. By realizing that the customers do not buy products, features and services but they need solutions to their problems, Tesco offers products encompassing various categories including food, beverage, home, clothing, Tesco Mobile and financial services. Establishing multichannel leadership and forming a seamless offer, it enables customers to shop however, wherever and whenever.
Distribution centers are the foundation of a supply network. They supply products to many of their stores, helping to stock a variety of products that certain stores are not selling. Instead of sending them straight to the store, the distribution center can stock many different products and send them the stores that are successful with that specific product to increase sells and eliminate losses. Another interesting fact is that while distribution centers are a huge factor in success and profit of a company, they can only lose money. Their main objective is the storage to always have products the guests want on hand, meanwhile not overloading the stores.
If company’s product is consumer product so it must be available easily to customers but if a product is premium consumer product then it will be available only some stores. Place of product depends on pricing and product decision of product. Distribution has impact on product’s profitability so logistics and supply chain decisions need to be taken care. KIA has 166 dealerships there is a large and expanding number of outlets Promotion: - it is again important factor as product’s success depends on promotion schemes like how product is advertised, how it will be communicated to customers like through TV, radio, magazines. It also decides segmentation and targeting of product.
The social and the psychological risk associated with shopping at the Kirana store have been addressed through not shopping personally, but getting the purchases home-delivered. Inspite of shifting over to newer store formats for bulk of their purchases, as high as 77% of the sample was found to source at least part of their groceries from the Kirana stores especially in urgent purchase or smaller quantities or customized purchase situations. The convenience in terms of the above and the savings in overall time spent in shopping appears to more than compensate for the disadvantages of shopping at a Kirana
The cost of such charges cannot be bargained by the sellers. This cost may likely to be same as how the others goods will be delivered to door steps when customers purchase fixed retail shops. 3. Costly to return: to shop with online e stores, the customers should aware about all the terms and conditions of purchasing a product, as well as should aware about the return policy otherwise it will be very difficult for the customer to return their product if they do not like. 4.
In order to keep its operation cost low, MYDIN does not do excessive advertising. Its advertising activities in the media and flyer are only before the peak period like festive seasons. It depends mainly on membership drives among petty traders and wholesalers and word of mouth promotion from their satisfied customers. Although such advertising methods will keep the operation cost low, there are some disadvantages. Firstly, word of mouth promotion can sometimes bring negative image to MYDIN.
Distribution is determined based on customers wants and need of the product. It depends on when, where and the cost of the product they are demanding. Distribution is more than just dishing out the final product, it also involves managing the warehouse, and destination the right size and kind of transport for distribution. It will not be worthwhile to have an eighteen-wheeler to distribute one hundred small items. Hence the reason thoughts should be put into organizing transport.