Key aspects of Arcadia’s Value and Supply Chain There are two types of supply chain aspects that the Arcadia including financial and nonfinancial. It is important to highlights activities and operations in regards of these two aspects so is to understand the supply chain management of the company. Financial Aspects of Supply Chain Inbound Logistics The inbound logistics of Arcadia is based on local and international suppliers all over the world that manufacture and supply the products of the company to its retail house by means of business to business approaches. The supply chain of Arcadia has helped the company to maintain the product availability and high quality products in their inventory to control the accessibility of products towards
Analysis c. How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products. Costing systems help companies determine the cost of a product related to the revenue it generates. Two common costing systems used in business are traditional costing and activity-based costing. Wilkerson is currently using the traditional costing system.
National brands as well as store brands Costco provides a mix of national brands and store brands for their customers. National brands, also known as manufacturers brands, are goods that are designed and produced by the vendor and sold to many different retailers. The vendor is then tasked with maintaining the product’s quality and developing the product’s brand image through various marketing activities. Store brands, however, are designed and produced by the retailer. The retailers is responsible for designing, developing, producing the products they place in their stores.
Reflecting their importance in industrial and transitional economies, marketing channels gradually came to be viewed as the set of interdependent organizations involved in the process of making a product or service available for use or consumption (Coughlin, Anderson, Stern, & El-Ansary, 2001). This perspective draws attention to those members (e.g. wholesalers, distributors, retailers, etc.) comprising the distribution system and engaged in the delivery of goods and services from the point of manufacture to the point of consumption (Anderson & Coughlan, 2002). The management of such institutions through marketing channel management involves the planning, organizing, coordinating, directing and controlling efforts of channel members (Gundlach et al,
Literature has discussed about leveling of the strategic directions of two companies in the context of supply chain and logistics in order to proceed to storage of goods owned by one party by the other. The risk and costs Firms essentially need to make a simulation of the public warehouse provider’s operation in terms of capacity, labor, and location. But most importantly total cost of outsourcing, per unit rate and level of risk must be given attention over others. The risk factor associated with outsourcing cannot be eliminated but can be mitigated. There has to be a surplus with the company compared to the risk undertaken.
When we learn about what supply chain is and the level it contain to manage a successful business. The four modern supply chain levels that businesses and companies need and put in use today to run their operations are retailer, wholesaler, manufacturer, and service provider. Since every level of supply chain has it own long list of unique job descriptions. I will only be focusing on one level of the supply chain which is the manufacturer. Manufacturer are know to produce products from raw materials to sell goods to consumers.
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.
Also customers usually assemble their purchased goods with little or no assistance from IKEA staff or third parties. Thus customers become part of the supply chain (self-delivery). This is because customers in actual sense undertake the tasks that would usually be done by the supply side. Figure 5: Pull and Push
The relationship between suppliers and customers can be defined as the relationship between the supply chain partners and the business links in the supply chain. It usually results to strong business links. The two main types of relationship of any supply chain are vertical relations and horizontal relations. Nike's vertical relations are relationships existing between firms that are in the supply chain for example distribution retailer and manufactures. The scope of vertical integration ranges for the production of the product to the replenishment of the product in the retailers or distributors shelves.
It may appear that Cisco and Otis are in the bottom line centralized companies. But, really their local managers and employees have great responsibilities in their IT operating models. After implementing e*Logistics Otis gave, for the first time, supervisors responsibility for observing if the site was ready to install an elevator before shipping was authorized. Previously, after manufacturing the equipment was immediately shipped. Another example is with clothes retail Zara, where they order clothes using digital tools for weekly timetable.