Firms adopt appropriate distribution networks to achieve supply chain objectives

Global Supply Chain
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Table of Contents
Ques. 2 Firms adopt appropriate distribution networks to achieve supply chain objectives...........3
(A) Difference in retail environment...........................................................................................3
(B) Appropriate distribution channels.........................................................................................3
(C) Reasons why e-business can be more successful in the PC industry compared to the
grocery industry..........................................................................................................................4
Ques. 3 Effective supplier relationship management contributes to the competitive advantages of
the firm.............................................................................................................................................6
(A) Importance of healthy vendor relationship for the success of supply chains.......................6
(B) Vendor selection criteria.......................................................................................................7
Ques. 5 Many firms focus on their core competencies to achieve sustainable competitive
advantage.......................................................................................................................................10
(A) Concept of core competency..............................................................................................10
(B) Outsourcing of activities.....................................................................................................10
(C) Pros and cons of in-house manufacturing and outsourcing (contract manufacturing).......11
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Ques. 2 Firms adopt appropriate distribution networks to achieve supply
chain objectives.
(A) Difference in retail environment
India is known as hub of shopkeepers and there are billions of customer in this country. This has
been becoming Westernised. Earlier, shopkeepers of India are managed by large retailers. Now,
there is increase in volume of small store owners. Most of the new shop owners can be seen in
Chennai and Bangalore within IT industries. There are lot of young workers who have arise.
There are new retail habits which have been involved in developing change in business
environment. In context of UK, it is seen that there is well mannered infrastructure. Due to this,
they are having more distributors than India. In the early stages, the scenario is India was
different and people were involved within managing business as large retailers. Now, there is
new scenario of new and small shop owners. In US, there are more effective retailing and supply
chain management operations. It is needed for developing business activities in such a way that
retailing sector business can be enhanced. It is very effective for any retailing sector company in
India there are problems within supply chain management.
(B) Appropriate distribution channels
Distribution channel is one of the important factor of marketing mix and this is he key
element of marketing strategies which are helpful to expand the business and increase the growth
revenue. There are various distribution channel which include; wholesaler, direct investment,
value added retailer, consultant, dealer, retailer and many seller agent are helpful in using
distribution channel. Mainly there are two type of distribution channels which are direct and
indirect channel. As direct channel is selling planer, door to door sales, sales by mails and sales
by opening different type of shops. Another methods is indirect channel; in this different type of
channel are included like One-level, Two-level, three level, four level and multi dimensional
channels. All these channels are helpful for the different type of companies who are serving their
customers either through commodity products which are suitable for the growth of the company
and needed by customer and another one is highly differentiated products which are associated
with customers who are needed to be more demanding and quality assured.
Distribution channel for commodity items hat are available form many source of data and
that is reason why the customers are expected from them to deliver their products as soon as
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possible. So for this it is important for the distribution channel is so effective and if they can not
be so responsive for their customer then it will be difficult of the company to maintain the image
in the market. And the result comes that customer will be moved to the next source. A good
distribution system would be designed for the help of retail storage who pick up and achieve
their targets and response in the high demand of the customers with low varieties of products.
Many other commodity products are effectively distributed using different type of distributors
which use proper storage facilities with effective delivery services. All this things are suited for
high demand and provide a quick responsive products.
Another distribution channel is suited for highly differentiated products, which are acting
as the role of manufacturing storage with the direct link to shipping companies and
manufacturing storage with in the transmit of products. Here both approaches have the ability to
work to manage inventories and postponed the products customization which actually provide a
support to serve the varieties of different products. This will help by the companies to manage
highly differentiated products while using distribution channels.
To opt different right distribution channel it is important to consider lots of factors which
include, different type of customer related products, analysis the number of potential which are
related to middlemen of the company. Another factor is the size of the order and their impact on
the growth of company. In addition to various factors of distribution channel are buying habit of
customers and geographical concentration of the markets. All these things are related to market
consideration of the company. This distribution channel is related to company which are
effective in nature and help different type of products to provide a reliable nature of company.
(C) Reasons why e-business can be more successful in the PC industry compared to the grocery
industry.
Electronic business (e- business) have in mind to the use of the web, cyberspace,
networking as per internally and externally an e-business designs a target to reduction of
functional cost to rising up the profitability and productivity that enhance to amended the inferior
field. The main reason for e- business that is more successful in the PC industry as compared to
the grocery industry are as follows:
 The PC industry involves a lot of form that has might allows their consumers and visitors
as in the specific term. There are various terms in the manner of demonstration and sales
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