Truckload volumes would be more easily gathered to and from distribution centers, lowering transfer and customer freight costs. However, the effect of using third party warehousing and transportation on transfer and customer freight costs is less obvious. 2- What impact would warehouse consolidation have on inventory carrying costs, customer service levels and order fill rate? Inventory carrying Costs would be reduced with better utilization of facilities and less duplication of effort. The company operates two warehouses in Newark, NJ and Los Angeles, CA.
Through arrangements with suppliers, they are able to offer a large inventory of loose diamonds at low prices. Until a customer orders a stone, Blue Nile does not have to purchase it. Besides being able to have small inventories, this set up allows them to be paid by the customer before they have to pay suppliers. Using this cost saving supply chain also gave them the advantage of being able to set a markup price lower than competitors. The nature of their business model enabled them to enter the fairly new online market and compete based on lower prices.
Therefore, if when a consumer enters a store and sees similarly priced products, one imported and one made domestically, they can choose a US made product without feeling as if they are overpaying for the same product. Many American consumers would like to purchase American products but if American products are considerably priced higher than imports, it will make it a difficult decision. Since the protective tariffs would even the playing field for the consumer, it would be a beneficial implementation. 2. Point #2: Tariffs protect American jobs and wages.
By not buying a gem from a supplier until a customer purchases it, it strongly limits the amount of risk and cash tied up at any point. I also like that they have a very lean supply chain that strives to eliminate middle men, keep costs low. This allows them to sell their products to the customer at very competitive prices. I do not like their marketing aspect being completely based upon the internet. A
In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior. The drive of market research is to collect data on consumers and prospective consumers. The collected statistics support business decision making, which therefore diminishes the risks involved in making these conclusions. This type of research would also benefit the consumer by lowering the cost on items bought most, while giving them personalized incentives to return. As a result, legal matters concerning privacy of the consumer has risen and established far more attention.
Essay 3 When businesses ﬁnd ways to internalize externalities they can make more money. Discuss why shopping malls charge a low price per square meter to department stores like Galeria Kaufhof, a medium price to stores like H& M, and a high price per square meter to jewelry stores and food vendors. “Externalities are the costs or benefits that affect people who are not directly involved in the production or consumption of a good or a service.” 1Thus, externalities are not limited to the parties participating in the market i.e. to producers and consumers but also affect other people in the society. Externalities cause deadweight loss which can lead to market failure.
All of these aspects would help raise store sales. Parkleigh’s employees are offered discounts under certain circumstances, meaning in his mind his employees might try to sell the discount products to the customers. Although just because employees are employed within a store, doesn’t necessarily mean each employee have enough money to buy the products within the store. So in the case the store prices maybe a on the pricey side a little higher than normal, which means using a discount would make the items more reasonable. Kaufmann is considered a middle class store, where structuring would need to have more attention.
They are not adding additional staff, equipment, or software so spreading the resources out could cause the quality of the existing products to suffer. The current crop of products and services are what made the company successful in the first place, there is no guarantee that the new products will be
The author fails to take other opponents of Natural’s Way into consideration. Thus, it is very likely that competitiveness in healthy food markets in P is tremendous sharp, while Natural’s Way has no advantages to outweigh its opponents to fire for a success battle. If that is the case, a new store in P, just as the author claimed, might not be a sensible decision, though healthy food and related healthy products are badly needed in
9). The rotation of perishable goods can be improved by conducting a survey and a questionnaire to the customer to indicate the needs of customer. Analyzing a turnover ratio per capital of each product will minimize the perishable rates. If a proper turnover ratio were set for the operation of buying and stocking of a product, KFF can easily expect what to expense and when to allocate the budget cutting the loss of excessive supply of the product. Specialty Shops Because KFF offers sophisticated professions such as butcher, baker, and wind steward, “payroll of these specialty positions is higher than that of the clerks and stock personnel” (KFF strategic plan, p. 9).