RETAIL SUPPLY CHAIN
Response
to question one
The
periods of the recent past has been characterized by the aspects of increased
development of the global economies. The development of the economies has been
manifested in various formats but the leading aspect of development is the
consideration of globalization that has resulted in the attributes of regional
integration between various nations. Regional integration and globalization are
extremely crucial because they enhance the existence of relationship and
conduction of business across geographical borders. In the wake of these
realities, crucial aspect of businesses have emerged where business are
conducted over the internet. In this regard, internet is revealed as a medium
that links various nations and enhances participation and conduction of
business between various parties and this is crucial because it leads to the
development of the global economies (Clive
Humby, 2008). Analysis conducted across the internet has reveled that some
global companies have adopted this medium and this includes Amazon, Tesco
Direct, Ocado and Sainsbury given that these companies uses the aspect of
internet to engage in their activities, the consideration of supply chain
management and logistics adopted becomes a crucial aspect that differentiates
the four companies (Elli Rabinovich, 2011).
Analysis conducted to reveal the performance of these companies has stated that
they have continued to develop ideal measurers of undertaking their business
incentive. In this aspect of development, ideal illustration is provided as
listed below.
Analysis
conducted to highlight the operations of Amazon has revealed the organization
has been engaged in series of development and innovations aimed enhancing the
shopping experience for the customers (Friedman,
2003). This attribute of development has resulted in the development of
an application for the smart phones and iPhones because they are crucial in
enhancing increases on the profitability in the business. The development of
this application has enabled an easier attribute of shopping for the customers.
With
the expansion of internet trade, Tesco Direct has initiated the development of
a mobile application that enables mobile phone users to access the store. The
development of internet retail service is a remarkable step that is aimed at
enhancing more sales because the research conducted by the company revealed
that their websites received more than 1.5 million hits from the smart phone
users and this is ideal for business (Geoffrey
Randall, 2011). This incentive led to the development of the mobile app
that links mobile users directly with the company online inter-phase.
The
consideration of Sainsbury is another online shop whose development has been on
the rise and it continued to provide crucial assistance to the public. The
development of this online shop has enabled the development of the incentive
that has resulted in the consideration of developing mobile phone portal
application that has enabled the mobile phone users to interact with eh company (John Joseph Coyle, 2008). The smart-phone and
android application has been of immense benefit and it has enhanced crucial
development of the incentive. On the same note, Ocado groceries has also been
on the verge of experiencing significant advents of development that has
resulted in the establishment of new stores to supplement the existing online
stores. Because of the attributes of increasing expansion, the aspects of
online shops have resorted to the attribute of enhancing development of their
shops through the construction of the automated warehouse to offer online back
up. Finally, one of the leading aspects that have reflected development in the
case of the four companies is the consideration of technological advancement
because all the four companies have expanded their market scope by developing
mobile phone application to enable mobile phone users to access their business
sites (Jesse Russell, 2012). In reality,
the establishment has been of immense benefit because it has resulted in the
increase in the market scope and it has enhanced increased profitability of the
company.
Response to
question two
Over the period, various online companies have continued
to experience growth because of the different aspects of logistics that they
have applied in their management and trading capacities. The development and
performance of the company is based on the establishment of missions and
objectives. In addition, the factors adopted are also influenced and determined
by be determination of logistics that are adopted to enhance performance of the
organization in the market. In this consideration, Amazon has continued to
excel in the aspects of the internet trade because of the attributes of value
that is has developed with its customers. Development of value and using the
aspect of value to drive growth of the company has been identified as one of
the logistics adopted by the company. Other logistical issues associated with
the company involve the establishment of free shipment to the buyers and the
provision of discounts to the buyers. Similarly, Tesco Direct has adopted the
same logistics of ensuring an increase in the home delivery system (Kenneth Karel Boyer, 2005). Analytical
results have stated the company has hired a firm to enhance that aspect of
conducting the delivery logistics program. Another significant attribute and
the leading aspect of logistics for the company are to adopt the launch of the
non-food internet direct.
Over the period, the company has been challenged because
of the aspects of temporary employee treatment because critics stated that the
temporary workers are underpaid.
Furthermore, Amazon has also been criticized because of the increasingly
poor conditions in which the workers are subjected and this initiated
significant social reputations and one time called a demonstration of the
workers. Certainly, the management and operations of Amazon in Germany has
received significant decline because of the disparities facing the organization
and this has resulted in the decline in the sales. In this regard, the
management of the organization prompted an urgent defensive plan of offering an
apology to the market with the aim of enhancing control of the significant
share of the market (Elli Rabinovich, 2011).
In comparison with the Amazon, Tesco Direct has continued to face significant
management problems and this has adversely affected performance of the company.
Tesco Direct has been established as the leading online retailers and this has
resulted in the usage of innovative measure of enhancing development and some
of which includes the consideration of adopting supply chain projects.
In response to the above challenges, both of the
companies have taken the initiative adopting ideal and critical reactions that
are almost identical. In view of these challenges, both companies have the
problem of losing adequate consumer confidence because of the atrocities. Upon
realization of the disparities facing Amazon firms in Germany, they resorted to
issue public apology with the aim of gaining pubic confidence and increasing
the sales margin of the company. On the hand, Tesco Direct also had the
attributes and atrocities that resulted and introduced the new management for
the retail stores (John Mangan, 2008).
Another remarkable move initiated by the management was to conduct
transformation of the existing traditional warehouse operations to cater for
the increasing different demands of multi-channel retailing. In a bid to
increase the performance of both companies, the companies have initiated the
attributes of developing the ideal logistics to enhance the inclusion of skills
and expertise to enhance development of both companies.
Analysis
of the operations of Ocado has proved that they have significantly adopted the
attributes of techn0logy that they have enhanced a full automated ordering and
delivery system. The establishment of customer fulfillment centre caters for
the consideration of the orders and it therefore responds to the increasing needs
of the customer’s through the consideration of special software that optimizes
the organizations production and ensures that objectives are fulfilled (Kenneth Karel Boyer, 2005). In this regard,
the development of the simulation software, which is a unique system for the
organizations logistical breakthrough, that enhances development and
consideration of the incentive to enhance growth and development. In order to
continue providing quality services to the customers, the logistical teams have
ensured the establishment of the unique system that is responsible for the
optimization of revenue. The simulation model includes a series of statistical
feasibility that is conducted over various projects to enhance their graphical
representation and statistical analysis (Kenneth
Karel Boyer, 2005). In summary, the leading logistical issues involve
improvement of customer experience, product flows, identify customer locations
and reduce the distribution costs.
On the other hand, analysis of the Sainsbury online
groceries has revealed that customer satisfaction is the ideal objective of the
operation and profit maximization is the mission statement of the organization.
Therefore, the organization has ventured in the establishment of ideal and
crucial attributes that will involve provision of goods at cheaper costs. The
logistical strategies adopted by this organization involve the consideration of
providing their commodities at cheaper prices than the supermarkets and this
incentive has ensured that they increase their market share.
The operation of the company is characterized by
significant challenges because the establishment in the UK market is faced with
significant challenges form the leading company like Tesco Direct sales. In
this regard, the establishment of cost effective measures to production has
been reduced and the company has been forced to close some of the leading
stores in the United Kingdom. The same problems have been faced by Ocado and
the challenges further continue to hold performance of the company. Ocado is in
the verge of facing the challenge that concerns expansion of the market scope
because the measures employed by the company has ensured significant increase
in the performance of the company. In this regard, the consideration of advancing
technological problems is an ideal aspect of dealing with the challenges of the
online companies. Over the period, technological development continues to be
felt on daily basis and this consideration poses a challenge to the online
shops and dealers because of the possible security threats. Hence there is the
need for the enhancement of increased security through the consideration of
advancing technology.
Response to question three
Over
the period, analysis of the technological development and the resulting
emergence of online retail chains have been of immense benefit because it has
resulted in the consideration of increasing development and also increasing
satisfaction of the consumers. In reality, the development of
Business-to-customer (B2C) model of business is extremely beneficial because it
enhances the consideration of enhancing distribution since the intermediaries
are all omitted in the consideration of the supply chain (Clive Humby, 2008). This venture has the attribute of developing
increased satisfaction of the consumers because it results in the increase of customer
experience where customers are concerned with the provisions of direct
purchases. With the development of the online stores and the establishment of
various outlets, the leading logistical problem facing the companies is the
aspect of timely delivery. In this regard, it is extremely crucial for the
establishments to consider the employing some of the leading aspects towards
the realization of reducing the time taken for the goods to reach their
destination upon receiving of the orders. The concept of enhancing this
consideration will be crucial in enhancing increase in the sales margin.
Another logistical attribute that the online chain stores have continued to
experience is the consideration of cost effectively (Jesse Russell, 2012). Establishment of cost benefit analysis of
the leading companies like Ocado and Sainsbury has revealed that the retail
shops are not efficient in their consideration and this has raised significant
concerns about the existing attributes of measures employed to attain the
targets of the organization. the surveys conducted about the operations of the
market has shown that online market has
captured only 8% of the retail product market and this calls for further
incentive to ensure that the market scope is significantly expanded. N this
regard, the logistical departments have the challenge of devising crucial
methods that will be responsible for enhancing participation of online
purchasing of both food and non-food products.
Response to question four
The advancement in technology has been immensely
beneficial because it has resulted in the development of online businesses. The
development of online business is a revolutionary invention that has ensured
increase convenience during the shopping and this consideration has further
resulted in the establishment of efficiency. Over the period, the increase in
the participation of online business has taken toll and the consideration of
advancing this attribute has been on the rise. In this realization, marketers
from across the global divide have initiated measures to enhance the conduction
of online sales (John Joseph Coyle, 2008).
Some of the measures that are crucial for enhancing business establishment
include the development of social media marketing. The recent past has
witnessed emergence of significant usage of the social media and this has
prompted the consideration of developing an initiative in the social media
because it has the capacity of connecting the business with diverse number of
prospective customers (Geoffrey Randall, 2011).
In addition, the markets should different campaigns aimed enticing both women
and men because studies has revealed that they use the internet differently and
an advert should be designed separately to capture their attention.
Consideration and evaluation of the marketing programs
are other ideal incentives of ensuring that the objectives and missions of the
business are ideal in moving the business towards realizing its goals. In this
incentive, the development of the websites must ensure that the programs are
capable of capturing more visitors to the site. Finally, the consideration of
the rate of return is another crucial incentive for consideration of ideal
marketing strategies because it provides the ground for evaluating the measure
employed by the organization. ROI provides ideal objective for evaluating
beneficial and detrimental aspects thereby providing a measure for choosing
ideal marketing strategies.
References
Clive
Humby, T. H. (2008). Scoring Points: . How Tesco Continues to Win Customer
Loyalty ,
170.
Elli
Rabinovich, T. M. (2011). Internet Retail Operations:. Integrating Theory
and Practice for
Manager , 190.
Friedman,
M. (2003). Amazon.com. Australia: John Wiley & Sons.
Geoffrey
Randall, A. S. (2011). The Grocers: . The Rise and Rise of Supermarket
Chains , 161.
Jesse
Russell, R. C. (2012). Ocado. Broadway: Book on Demand.
John
Joseph Coyle, C. J. (2008). Supply Chain Management: A Logistics Perspective.
New
York: CengageBrain.
John
Mangan, C. L. (2008). Global Logistics and Supply Chain Management.
Australia: John
Wiley & Sons.
Kenneth
Karel Boyer, M. T. (2005). Extending The Supply Chain: . How Cutting-Edge
Companies Bridge the
Critical last Mile into Customer's Homes ,
200.
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