As a contrast to the B2C business, a company operating in this sector will have fewer customers. Those customers will naturally buy a larger quality, in most cases. One big difference with this sector is price, as in most cases B2B businesses have an inelastic price demand. This means that products and services provided to corporate clients fluctuate less, and not affected by the same pricing influences found with B2C businesses. However, the demand for this business itself differs because there are fewer customers, purchasing more items, the demand for such B2B businesses can fluctuate, depending on the needs of its corporate client base.
Channel innovations that would enable grocery chains to compete effectively with low cost alternative retail formats. This included a huge shift away from buyers into category managers, a transition not many buyers were able to make. How did the oldest total order management process work? P&G's oldest order management system consisted of category business planning and 6 steps: order generation, order acquisition, order processing, shipment control and billing, delivery execution, and financial transactions. Each of these six steps all had the same primary drawbacks: too many variables for success measures, inefficient data processing, highly manual processes, excessive paper used for transactions, on time complete shipment issues, low billing system accuracy with only 55 % of perfect orders, and high payment deductions on an increasing rate.
After careful consideration of all relevant data, the following recommendations are being made: 1. The direct sales model that has been successful in the past is no longer sufficient for several reasons. Dell’s core competencies include customized products, fast order fulfillment, and great customer service. While these features must be retained and enhanced, customers are looking for more. Additionally, competitors have copied parts of Dell’s business model, thereby reducing its ability to drive sales.
2.5 Strategies for Effective Reverse Logistics. James Stock (2006)33 Effective product returns strategies and programs can result in increased revenues, lower costs, improved bottom lines and superior customer service. Product returns have mostly been viewed by customers as a necessary evil, a painful activity and, usually unavoidable. Manufacturers, retailers, and distributors have viewed returns mostly as a pain, a cost center and an area of probable customer dissatisfaction. As long as products are sold, there would always be few returns.
This essay intends to prove that the new culture of consumerism influenced the British society in all aspects during this period. [Why Britain? add Neil Mc Kendrick/Brewer Talk] Already the preceding century saw the beginning of developments such as the Industrial Revolution and the rise of the British Empire, which led to a ground-breaking transformation of society in the following decades. Incomes increased, the population grew quickly and new markets emerged. More parts of the general public than ever developed modern spending patterns and people purchased material goods for pleasure rather than need.
In that current situation, economic slowdown and huge inventory write-offs resulting from this lack of visibility have highlighted the need for a systematic way to predict and manage demand. Today the new technologies have introduced to the supply chain and it is help to extend supply chain visibility. Companies are looking outside sources within the enterprise, such as sales and promotions groups, to include customers in the demand management
During the early 90s the government encouraged private companies to get listed on the stock market. Understanding the growing needs of business Lai Siew Wah’s company shifted from a private limited company. The business expanded as it had more resources to funds now and this following a gradual transition a family owned management team to a diversified and qualified management
The undersupply of products directly results in the loss of potential sales at the stores while oversupply contributes to increased costs especially because leftover inventory is not marked down for reduction owing to the premium brand positioning of K/S and is subsequently collected from every store. This poses a challenging operational problem for K/S that involves decision making on the optimal method to be used in packing sets of different items in boxes of different sizes and allocating the boxes to different stores in a manner that meets the demands of individual stores. The case titles this as the assort-packing and distribution problem. Hoskins et. al.
Even through 100% Foreign Direct Investments investment in allowed in cash and carry and 51% in single brand, high duties and taxes on imported goods makes foreign luxury goods not affordable to lower-middle class. This is a socialist thought policy, which is implemented to compensate the subsidies on basic required products provided to people. Although it brings down the competition in retail sector local players have emerged at top of the sector and indirect foreign investment in their company. As global recession should have negligible effect in retail sector, it has affected all the departments of a country’s economy which caused in increased unemployment and last man situation as companies did lots of cost cutting to support operating cost. This paper states that crisis came as blessing in disguise which helped retail sector to operate with efficiency and correction in prices.
2.1 INDUSTRY PROFILE Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.