1. The responsiveness of the supply chain of a grocery store can be improved implementing a just-in-time inventory system for perishable food items. These types of food items such as vegetables have a limited shelf life. Grocery stores should not over purchase on these items because they will incur in loses due to damaged goods. In regards to non-perishable items such as canned foods buying in bulk is a more suitable strategy to lower the cost of good sold. Groceries stores should not have too many brands of a same item since that takes up too much shelf space.
2. Manufacturers can improve the efficiency of its transportation variable in its supply chain by installing GPS tracking systems on their trucks. The GPS system will allow the manager to determine the exact location of the goods in transit. This can help the firm to improve coordination and customer service relations with its suppliers and vendors. Another strategy that can be used to improve the efficiency of the transportation variable is by switching from gasoline vehicles to vehicles that use alternative fuels.
The price of gasoline is extremely volatile (11alive). Trucks operated by natural gas will help companies better estimate their fuel expenses for a period of time. 3. A bicycle manufacture can improve the responsiveness of its facilities by purchasing its raw materials from local vendors. It might be cheaper to buy goods from emerging economies such as China, but it takes longer for the goods to arrive at the factory. Buying locally can give companies greater flexibility. This strategy is well suited for customized bike shops and shops that deal in small volumes.
Companies that have large volume of sales should use the traditional strategy of seeking the lowest raw material price no matter the location. 4. The distribution network that should be used by this company includes a strategy of exporting the goods outside of Brazil. Due to the heavy competition in the chemical market in Brazil the firm is not going to be able to obtain a high market share in this country. The goods should be transported by air to the distribution spots in different parts of South America and North America.
5. Under the scenario that manufacturers want to target customers directly distributor companies have to change their strategy and provide greater value to the customers. Greater value can be provided by improving the level of service that the company used to offer. An example of how value can be added is by eliminating delivery fees to offer free delivery. Another strategy that can be used to add value is to provide free consulting services on site. 6. The suitable distribution system for a commodity depends on the type of commodity.
For instance agriculture commodities require companies to have many customers that want to purchase the crops prior to crops being ready. Other commodities such as precious metals can be distributed using methods that are not time sensitive. Commodities that deal with volumes require the establishment of warehousing centers. Work Cited Page 11alive. com. 19 September 2011. “Gas prices fall despite volatile markets. ” 28 September 2011.