Question

1. Imagine you are the Chief Operations Officer (COO) of a mid to large retail chain. You were called by the CFO (Chief Financial Officer) about a decrease in sales and profitability due to tough competition in prices. Discuss how a well-implemented Supply Chain Management system could help your company to mitigate the problem. Your objective is to convince the CFO to invest in a new SCM platform.

Answer 1

As COO of a retail chain company I need to understand my responsibilities properly.if I am the COO,I need to maximize sales and make the profits as high as possible and for that costs need to be decreased and revenue needs to be increased.

It is obvious that if companys sales and profits have declined then chief financial officer will call me and ask for explanation regarding the decline.

If there is tough competition in prices then we will have to decrease our prices.I will explain to CFO that through proper supply chain management,our objectives can be achieved.

I would convince CFO that a different supply chain platform through innovation would make our brand more popular and more demand for our products would be created.we need to understand the pricing strategy of our competitors and accordingly plan for our products pricing as well as wuality improvement.once we improve the quality of our products,sales and profits will eventuallly follow and our company will develop at a faster rate.