Monday, May 6, 2013
BEST BUY Introduction Technological advancement and globalization experienced in the global regime has been of immense benefit. One of the leading benefits is the establishment of global companies that operates across the global regime. This attribute is enabled through the consideration of regional integration that has enabled the union and operations of various economies across the global economies. In the wake of these realizations, Best Buy Co has emerged as one of the multinational companies operating on the global podium as the dealer in electronics. Since the establishment of the corporation in 1996, the corporation has experienced critical attributes of development and this has resulted in the subsequent development and classification of the corporation as one of the leading global consumer of electronics (SCHULZ, 2012). Best Buy is an American corporation with the head quarter in Richfield. Over the period, the company has witnessed significant transformation leading to the expansion of the dealership commodities and this has encompassed mobile phone products, entertainment products, appliances, electronics and computing devises amongst others. In order to increase its distribution, the company has initiated various distribution channels but the most commonly used channels are the retail stores, online retail operations and call centers. The advancement in technology and globalization attributes have been identified as critical factors behind the expansion of the company because the company has grown to operate in both domestic and international markets and this has the satisfaction derived by customers while on the hand also increasing the profit margin of the corporation (Gosman & Ammons, 2012). In reality, the success of the corporation can be ascertained to be the consequence of various factor considerations. Some of the leading factors that have enhanced development and profitability of the organization includes communication, transportation, and choice of inventory and the range of logistics. The combination of these factors has necessitated the aspect of development and growth of the corporation. Logistics management The aspects of logistics are extremely essential for the enhancement of company performance because it works together with the supply chain management that is responsible for implementing the plans and controls in the corporation. Logistics management is also concerned with the establishment of effective and efficient consumption in order to satisfy the needs and wants of the customers (Gosman & Ammons, 2012). Over the period, logistical activities have played vital roles towards the development of the organization. generally, logistics works together with supply chain management and together they represents synthesis of principles, methods and concepts from the more traditional areas of marketing, purchasing, accounting, transportation and production. The discipline of logistics and supply chain management is also concerned with the unification of the above element to increase organizational performance and also to increase the organizational economics and finally, to enhance the establishment of ideal organizational behavior (Edwards, 2009). In conclusion, logistics management in the corporation is essential because it reflects the part of the supply chain management responsible for the process of planning, implementing and controlling the process of the organization. This is critical as it enhances effective and efficient flow and storage of the commodities and conduction of services in the organization. The basis of initiating logistics is to enhance consumer satisfaction. On the other hand, supply chain is identified as the range of activities that necessitates the flow and transformation of commodities from the extraction stage to the final end user. Material and information flow are also incorporated in the consideration of supply chain. The consideration of organizational performance also considers the attributes and considerations of supply chain management. The aspect of supply chain management is concerned with the integration of collective supply chain activities through the attribute of improved supply chain relationship. Analyses of the research records have stated that the core reason for integration the attributes of supply chain management in the operations of the organization is to aid the realization of competitive advantage (SCHULZ, 2012). The establishment of competitive advantage in the market is attained through the consideration of strategic coordination, systematic ad the development of the tactics across the business functions within the particular economy. In this regard, the adoption of supply chain management is beneficial for the establishment of long-term corporation performance. Logistics mix Logistics mix is an extremely critical factor that determines the range of logistics dimensions adopted by the organization. Logistic mix is essential and it helps in explaining the range of logistical attributes adopted by the company. The elaboration of logistics mix is essential because it has critical relevance with the performance of the company. In view of the Best Buy, some range of the logistical mix adopted by the management with the aim of enhancing increased satisfaction of the consumers includes the following (SCHULZ, 2012). Distribution mix has been adopted by the company and it has largely contributed towards the development of company performance. Generally, consumers are engaged with the aspect of making purchases in smaller quantities. The distribution channel adopted by the company has been resourceful because they conduct the exercise of braking bulk, consolidating distribution, carrying inventory and financing the purchases. In reality, this activity is extremely beneficial because it is considered one of the critical attributes of organizational success factor that contributes towards the satisfaction of the increasing needs of the consumers. Over the period, Best Buy has been engaged with the consideration of adopting various consumer distribution channels. Apart from the channels discussed above, some other distribution channels include manufacturer- direct marketing, manufacturer-factory outlet, manufacturer-major chain, and manufacturer-distributor-retailer. Transportation is another example of the logistic mix that the management of Best Buy Corporation have initiated to enhance satisfaction of consumer needs. Recently, the corporation introduced online retail store and this reduces transpiration costs. The introduction of this is coupled with the existing transportation incentives that focuses on establishes retail outlets in the economy. The company has more than 1000 retail outlets global to enable it reduce transportation costs and satisfy diverse customer needs. In addition to the transportation, inventory management is another logistical issue that helps in enhances performance (SCHULZ, 2012). Best Buy Co has always worked in collaboration with the retailers to ensure that the stores have the necessary commodities for the consumers. The presence of inventories is extremely beneficial because it enhances the realization of place utility. Finally, communication in an organization is extremely vital component of logistics mix. Communication is critical because it enables retailers to get the products and this is in terms of stock, volume, form and prices. The retailers must capture the informational data to enable them increase their efficiency. In view of the highlights about communication above, Best Buy Co has been on the fore front in adopting the attributes of ideal communication paradigm that has necessitated the development of the company. The growth and development of the corporation has been necessitated through the adoption of effective communication between the company, stakeholders and the customers. Apart from the consideration the above logistic mix, material handling and warehousing are other critical logistical mix attributes that are essential for the performance of the corporation. Material handling is one of the critical aspect sin the company because is concerned with the transformation of the material to derive beneficial commodities. Over the period, raw materials have always been converted into finished products that satisfy the needs and wants of the consumers in different capacities (Gosman & Ammons, 2012). Conversion of raw materials into finished commodities takes various incentives and the adoption of the best strategy is the consequence of ideal logistical mix. In addition, warehousing is also an essential component of logistic mix and supply chain. In reality, the development and performance of the organization is based on the provision of different utilities to the customers. Warehousing results in the aspect of place utility and this enhances the availability of the commodities at the right time place for the consumers. This incentive is extremely crucial because it enables the manufacturing companies to have space needed for additional manufacturing. The illustration above helps reveal that warehousing and materials handling are essential elements of logistic mix and supply chain management. In reality, both of these events have immense contribution towards the development of supply chain that results in the critical development of market and company development. Materials handling and warehousing play critical role in the supply chain management because they result in the management of inventory. As highlighted above, inventory management is critical and an important consideration of organization supply management. The establishment of these logistic mix and supply chain management attributes are extremely beneficial and results in the formation of increased development. Best Buy’s Logistics Mix Over the period, the management of the company has ensured the attributes of supply chain and logistics mix are development in the company. The company has developed series of methods to ensure that the establishments of development are achieved. Some of the leading logistical mix and supply chain management incentives includes innovative supply chain that connects retailers to manufactures and customers. Innovative supply is beneficial because it captures the consideration of warehousing, material handling and inventory. All these three aspects of logistical mix and supply chain management incentives are crucial for the development of Best Buy Corporation (Gosman & Ammons, 2012). The development of the supply chain management in Best Buy Corporation has been characterized by increasing disparities and adversities thereby resulting in the improvement of inventory control, increasing hygienic conditions of the stores and lower costs of materials. The leading electronic goods retailer has been characterized by increasing transportation costs. This prompted the change in the logistical strategy and resulted in the remodeling of its warehouses. The leading retail dealer in electronic goods has adopted ideal logistics mix and supply chain strategies that have resulted din the development of specific locations of the retail outlets to offer more intimate shopping environment with enhanced cleanliness. Best Buy has announced ideal reduction in transportation cost as one incentive of improving flexibility and efficiency of the shops. Development of ideal communication in the Best Buy retail shops has resulted in the retention of customers. Communication is an important attributes of logistic mix and supply chain management and it has enhanced performance of the company because it has provided feedback for the customers thereby enabling improvement of the inventories, transportation, material handling and transportation. In order to improve the satisfaction of the customers, the managers of Best Buy Corporation have initiated the development of programs that leads to the development of fixtures and supplies that are critical for upgrading the stores. In this regard, the corporation has initiated ideal communication paradigm to ensure that the supply chains are adequately managed and the inventories are critically developed. The managers have stated that the development of the fixtures and supplies for the upgrade projects (Edwards, 2009). The logistical teams have also enhanced the realization of savings and shipping costs through the concentration on the development of warehousing in advance sale dates. The inventories and other commodities are located a few miles from the stores to reduce transportation costs and the changes in the corporation are handled nimbly and at a far less cost. Finally, the management of the company has also been ideal in enhancing development of the company. Best Buy Corporation has acknowledged the contributions of the customers towards its success because the customers have been on the forefront in providing crucial and useful information to the company. In this regard, communication is an extremely critical factor leading to the development of the company. Reconstructing the Supply Chain The adoption of ideal supply chain is essential and Best Buy has initiated measure to ensure that it restores and builds its supply chain. The performance of the company, realization of goals and satisfaction of the customers is based on the attributes of the supply chain. Some of the attributes leading to the reconstruction of the supply chain are the development of the global market and the presence of innovation in the market. Innovation has been considered to an essential element because it results in increased satisfaction of the customers’ needs. In the view of this realization, Best Buy Corporation has initiated measures that will ensure reconstruction of the supply chain and this involves development of the logistical mix. Innovation of new storage mechanism entails new warehousing dimensions and reduced transportation costs. New methods of inventory and material handling are also included in the quest to ascertain reconstruction of the supply chain (Edwards, 2009). Finally, reconstruction of the supply chain is an incentive that is normally conducted by companies in periodic intervals because it gives them the opportunity to review their establishment and improve customer satisfaction. The development of these attributes has an impact in increasing profitability. Conclusion The development of Best Buy Corporation that occurs in the nineteenth century has represented an ideal technological development because this electronic dealer has emerged as the leading retail outlet for the electronics and others machines. Logistic mix has been identified as the factors resulting in the satisfaction of the customers and they include the attributes of warehousing, communication, transportation, material handling and inventories. The development of these factors is coupled with the development of supply chain management. In reality, logistic mix and supply chain management are critical elements in the performance of the corporation. Best Buy Corporation has continued to be profitable in the market because it has developed its logistic mix and it also has significant supply chain management policies. The recent period has been characterized by the conduction of reconstruction in Best Buy Corporation and this is ideal because it entails the review of the existing policies with the aim of identifying better methods of satisfying the increasing needs of the customers. References Edwards, C. (2009). WHY TECH BOWS TO BEST BUY. Businessweek, (4160), 50-56. Gosman, M. L., & Ammons, J. L. (2012). Measuring Retailers' Success At Achieving Supply-Chain Economies. Business Education Innovation Journal, 4(2), 94-98. SCHULZ, J. D. (2012). 2012 NASSTRAC Shipper of the Year: Best Buy meets the multi-channel CHALLENGE. Logistics Management, 51(10), 28-31.
Posted by Dickens Guyah