Super Bakery wan in the look of a system that would figure out with more certain cost of each order. By having this system, the pricing could be more accurate. The system could be of great revenue results to Super Bakery as mention before. This strategy is a positive plan for the company and will provide more positive changes to Super Bakery’s Challenge. Would a job order cost system or a process order cost system work for Super Bakery.
The outsourcing strategy allows Super Bakery to minimize on liabilities and expenses such as real estate for storage, manpower, and other related expenses giving Super Bakery to take on more of a business management role rather than being tied in to all of the business functions. ABC System Super Bakery found the necessity to deploy an Activity-Based Costing (ABC) system because of the challenge of controlling the costs of the outsourced activities. Even though the corporation has been growing at an “annual rate of 20%” ABC Bakery management wanted to analyze further into how they could further control costs and increase profitability. What management found was that despite varying profit margins on the orders, it appeared that the cost of each order was the same because the higher profit margins were making up the lower profit margined orders. This made it difficult for Super Bakery to determine from a high level what products may need price
Doing this allowed Home Depot to attract new customers because of the new, innovative products they now stocked. (Constantineau) With the addition of HR managers in each store, proper training and the evaluation process became a focal point. Pre-Nardelli, there were 157 employee performance evaluation forms in use. He cut that down to two, one for management and one for regular employees. Distinguishing itself from competitors is a constant battle, and the macroeconomic environment may shift against the corporation.
Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General. Some argue that part of the reason Dollar General has been so successful as of late is attributed to the economic crisis the United States experience during the second half of the 2000s. Economist believe that consumers will not shop at the Dollar General as much as the economy improves. In an effort to retain their existing customers and recruit new ones as the economy strengthens, Dollar General has begun to stock name brand items. Some analysts also believe that even when the economy improves, your average consumer will still look for ways to save money and continue to frequent the dollar discount stores.
I also believe that by following my recommendations, Barilla will succeed in influencing its distributors and Sales personnel to work together and implement the JITD program. This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain. 2. Identification of the problem Barilla is suffering from what is known as Bull whip problem- high inventory, -magnification of demand variability across the chain-frequent promotion – only one way of flow of information. • Promotions: Barilla’s sales strategy relied heavily on the use of promotions, in the form of price, transportation and volume discounts.
As such educating consumers can direct more customers towards those businesses provided that retailers still have products the consumers want to begin with (Dickson, 2008). In this line of thinking, this is something that managers of second-hand stores should consider as a second-hand shop is a socially responsible business. While it is impossible due to the very nature of second-hand shops to have complete control of the offering, educating consumers about the benefits to second-hand shopping may appeal to those consumers who have personal values or ideologies related to not wasting resources, sustainability, the environment or helping others. The benefits that can be mentioned are things like how much resources are consumed when producing new clothing and then in comparison how much resources it takes for a consumer to buy a piece of already used clothing. An approach like this can appeal to those who are ethics and ecology motivated and perhaps even to those who want to distance themselves from the
1) How does Zara add value to the distribution side of its supply chain? Explain how each action or strategy adds value. Zara has added value to its distribution network by first concentrating on its distribution centers. All goods are shipped through its main distribution center, and extra space is built into the distribution center to handle economic or seasonal surges. Zara has tailored its working hours at the distribution center to match demand, and thus pays for only the labor needed to achieve accurate and timely shipping.
Feedback is gotten from surveys, sophisticated tracking of purchases and other ways of determining customer satisfaction. This means that companies are focusing more on the consumer needs and wants than in the traditional sense of focusing more on the product. “The American Marketing Association defines integrated marketing communication (IMC) as a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.’ Part of the integrated marketing communication is the marketing mix. This combines marketing and communication together. When this is done this mix is usually evaluated under eight categories: sales promotion, public relations and publicity, events and experiences, direct marketing, interactive marketing, word –of-mouth marketing, and the sales force.” Red
(p. 2) In order to provide such low prices at a great value, IKEA had to reinvent the wheel in terms of the supply chain and ultimately how customers received their products. They were a game changer in the furniture world as described by Lancaster & Walters (1999): The IKEA example is interesting because the company has: systematically redefined the roles, relationships and organisational practices in the furniture business. The result is an integrated business system that invents value by matching the various capabilities of participants more efficiently and effectively than was ever the case in the past. (p. 648). IKEA’s promise of value also extends past its products and into the customers’ actual shopping experience.
ERP system improves Inventory control by offering real-time information on finish good inventory allowing manufacturing and planning to evaluate customer demand. Moreover, ERP system provides data which can further be analyzed to gain more grip on high-moving vs. slow-moving products to minimize the stocked inventories. ERP system improves Material control by providing updated prices on materials which can be leveraged to negotiate better pricing from vendor, therefore directly impacting the company’s bottom line. Moreover, ERP provides more visibility on DOH on storage of raw materials, where this information can be utilize to deploy VIM process to reduce DOH for raw materials. Enabling business to reduce cash-to-cash cycle time.