In: Operations Management
Step 1 Consider a time when you wanted
to buy a certain product but could not find it.
What was your reaction? Why? How did the lack of availability
affect your perception of the company and of the product? Did it
make you want it more or did it make you frustrated so that you
lost interest. Speculate on the supply chain and distribution
channel strategy that the company was trying to achieve. What is your perception of the product and the company? How is
your perception influenced by the ubiquity of the product?
Speculate on the distribution strategy and goals for the
company. How did the availability of the products influence your thoughts
and attitude toward the product and the company? Speculate as to
whether the companies' distribution strategies have proved
effective and served them well. In addition to discussing each of the questions in Steps 1 and 2, be sure to include the comparison between the two companies and products. A two-page (500-word), double-spaced paper |
STEP 1 IN THE TODAYS BUSY LIFE SCHEDULE IT IS VERY DISAPPOINTING TO SEE THAT WE ARE IN NEED AND IT I DECLARED OUT OF STOCK. IT SEEMS VERY DIFFICULT TO FIND A SOLUTION TO THE PROBLEM IT BECOMES WORSE WHEN ONE KNOWS OF NO CLOSE SUBSTITUTES OR NEARBY STORES IS NOT PRESENT TO BUY THE PRODUCT. In the event that WE HAVE A GREAT DEMAND FOR THE SAME, WE DEFINITELY TRY TO KNOW THE TIME OF IT AVAILABILITY. IN CASE IT IS WITHIN FEW HOURS OR A DAY THEN WE CAN WAIT FOR IT OTHERWISE WE ARE OFTEN FORCED TO SWITCH TO OTHER PRODUCTS. AGAIN THE LACK OF PRODUCT MAKES US FEEL LIKE THE PRODUCT MANUFACTURER IS NOT SERIOUS ABOUT THIS PARTICULAR PRODUCT AND EVEN WE MIGHT THINK THE SAME ABOUT THE ENTIRE PRODUCT LINE OF THIS MANUFACTURER. THE COMPANY CAN EASILY LOSE ITS CREDIBILITY IN CASE THE PRODUCT WAS NEEDED URGENTLY AND IT WAS NOT AVAILABLE. Certainly THE UNAVAILABILITY OF PRODUCT HIGHLY IN NEED AFFECTS THE PERCEPTION AND BUILDS A NEGATIVE IMAGE IF THE PROBLEM PERSISTS CONSTANTLY AND FOR LONG PERIODS.
IN THIS CASE WE CAN ASSUME THAT THE COMPANY DOES NOT HAVE A PROPER SUPPLY CHAIN IN PLACE, IT IS NOT VERY MUCH AWARE ABOUT THE RIGHT QUANTITIES DEMANDED AT DIFFERENT LOCATIONS. THEIR ROUTE PLANNING OR DISTRIBUTION STRATEGIES ARE NOT WORKING AS PER THE NEEDS OF THE CUSTOMERS. THE COMPANY OVER HERE IS NOT ABLE TO PERFORM ITS SUPPLY OBLIGATIONS PROPERLY AFTER THE PRODUCT DEMAND HAS SOARED.THIS WILL ERODE AWAY THE CUSTOMER BASE FROM THE PRODUCT AND IN THE LONG RUN FROM THE COMPANY ITSELF.
STEP 2 A PRODUCT WHICH IS EASILY AVAILABLE KEEPS ON TICKING IN THE MIND OF A CONSUMER, ALTHOUGH IT MUST HAVE A GOOD REPUTATION WITH THE CUSTOMER AS REGARDS QUALITY. THE AVAILABILITY OF PRODUCT BUILDS UP THE CONFIDENCE OF THE CUSTOMER AND HE THINKS THAT THE COMPANY AND THE PRODUCT ARE GOOD. IT BUILDS UP A POSITIVE IMAGE FOR BOTH. THE EVERYWHERE AND EASY AVAILABILITY OF THE PRODUCT MAKES US FEEL THAT THE PRODUCT IS IN HUGE DEMAND AND THERE IS NO SHORTAGE OF ITS. WE CAN EASILY AND WITH CONFIDENCE USE IT OVER TIME.
THE UBIQUITY OF THE PRODUCT SHOWS A LOT OF PLANNING AND EXECUTION OF THE SUPPLY CHAIN MANAGEMENT AND DISTRIBUTION STRATEGY OF THE COMPANY. THE COMPANY IS TRYING TO CAPTURE THE MARKET BY ENSURING ITS PRESENCE EVERYWHERE.
STEP 3 In the event that WE OBSERVE THE ABOVE DISCUSSION WE SEE THAT DISTRIBUTION IS A KEY FACTOR IN CAPTURING MARKET AND MAINTAINING GRIP OVER THE MARKET. THE EASY AND WITHIN REACH AVAILABILITY OF PRODUCTS BUILDS UP CUSTOMER LOYALTY AND BRAND LOYALTY. Great SUPPLY CHAIN IS NECESSARY, ALTHOUGH SOMETIMES OVER PRESENCE AMY MAKE IT DIFFICULT TO FOCUS ON PROPER PRODUCT DISTRIBUTION IN AREAS OF MORE DEMAND AND LESS DEMAND. Opportune TIME AND RIGHT PLACE OF AVAILABILITY IS NECESSARY TO GAIN MARKET SHARE AND CUSTOMER CONFIDENCE.
Appropriate DISTRIBUTION STRATEGIES ARE THE NEED OF THE DAY, WITHOUT THEM WE CANNOT EXPECT THE NATIONAL AND INTERNATIONAL TRADE TO FLOURISH. THE VAST BUILD UP OF SUPPLY CHAIN INFRASTRUCTURE BY THE CHINA GOVERNMENT SHOWCASES THE IMPORTANCE O SUPPLY CHAIN. Appropriate SUPPLY CHAIN AND DISTRIBUTION STRATEGY ALSO REDUCES COST AND INCREASES PROFITABILITY. BEST SUPPLY CHAIN EXAMPLES CAN BE TAKEN OF TOYOTA, QUALCOMM AND MANY OTHERS WHO ARE WELL KNOWN IN THEIR FIELDS AND ACHIEVED MUCH DUE TO DISTRIBUTION STRATEGIES.