Global Supply Chains: Distribution Networks and Retail Environment

This document discusses global supply chains, focusing on distribution networks and the retail environment. It explains the concept of disintermediation and the role of marketing intermediaries. It also compares the success of e-business in the PC industry and the grocery industry.

Global Supply Chains

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. Distribution networks..................................................................................................................3
2. Retail environment.......................................................................................................................4
Question 3........................................................................................................................................5
Question 4........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Global supply chains referred to the process in which the supply chain shows how the work in
selling and supplying the product at the global level and it is very important for the organizations
to understand the global supply chain so that they can sell their product and services globally.
The report will explain the distribution network and the distribution strategies and further report
will explain the importance of a business and how PC industry get successful due to a business
compared to the grocery industry.
1. Distribution networks
It can define as a system of supply chain management which focuses on inventory
management as well as supplying to customer by a channel. It helps firm to deliver product to
consumer on time and hence increase customer satisfaction level which become important part
for changing business. Fast as well as reliable distribution strategy implementation can only help
firm in gaining competitive advantage in changing and hence increase profit share of firm. It
depends on two factors namely infrastructure quality of country as well as customer location for
example: person living in remote will get product late and on the other side nearby customer can
get easily (Koberg and Longoni, 2019). Organisation in country use various types of distribution
network such as hub-and-spoke or decentralized.
Distribution network for commodity items
There are number of ways in which commodity items such tires, tea, ground beef, orange
juice, and clothing can be supplied to customers. Fast delivery needed in changing business so
that customer able to use commodity on time and hence consumption increase directly impact on
selling of product as well as services.
Direct shipping from manufacture
In this product are manufactured in organisation which have own distribution system and
hence goods can easily be supplied to consumer on time. It is one of the best networks but
limited to few firm such as bakery shops, milk parlour etc. Mediator role and ware houses need
decrease in such type of supply chain management and hence this amount can be utilised for
further expansion of market and increase profit share.
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Direct shipping from manufacture with in transit merge
In this multiple shipment by suppliers relating to product as well as services done from
different areas and aim is reach particular customer. It decrease financial expenditure and hence
removes need of ware houses for example: accessories of electric gadget come to customers.
Retail storage with customer pickup
In this product and services of firm placed at local retail stores which is near to
customer’s place and hence can purchase directly from it and can place order online (Busse,
Meinlschmidt and Foerstl, 2017). There are multiple shops available in country which offers
variety of product to customer and hence increase their satisfaction level.
Distribution network for differentiated products
In this organisation uses dual supply chain strategy to reach customers. It emphasizes on
supplying of low‐end and high‐end goods on different platform namely online as well as offline
and hence customer has choices in purchasing product. It applies when consumers are minimally
sensitive to goods as well as services. It makes network of manufacturer, retailer, and e‐retailer
which help improve supply chain management of firm. Selling through intermediaries are also
use by firm in selling product for example: franchise of retail company or product sell to local
shops which help in reaching customer easily as well as on time and hence generate higher profit
on time.
2. Retail environment
It refers to activities that emphasizes on increasing consumption of product & services in
country and hence support industry. However it depends on various factors for example country
with large population and ineffective supply chain management cannot create large opportunities
for firm and customers’ needs cannot be fulfilled. On the contrary country with small population
but good infrastructure has higher consumption as product reach them easily and hence market
share of firm (Tien, Anh and Thuc, 2019).
There are number of factors influence on consumption customer as well as creating retail
environment for country. In china people enjoy shopping but because of low pocket power they
are limited to few commodities while western countries people busy with routine life and much
focuses on purchasing online with necessary product but they have impressive amount to buy
anything which needed and more focused on quality rather than quantity. Chain has largest
population in world and hence demand is high which can create multiple opportunities for retail
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firm but because of poor infrastructure and ineffective supply chain management hampering
growth of various industries. United State invest large amount of money in developing
infrastructure so that organisation in country will not face challenges in reaching to customers
but population is low and hence demand is less. Chinese people focuses on reducing price of
product by bargaining and hence breaking price while decrease profit share of sellers while in
US consumers do not focuses on reducing prices while they prefer quality as well as timely
delivery of product so that their needs can be full filled on time. Majority of buyer’s in china are
highly demanding and not loyal to one brand and hence different retail company take it as
opportunity for expanding business and increase profit share in changing business and on the
contrary people in America remain loyal to one brand for example Wallmart product are high in
demand in country which create business atmosphere for few firms. Social media highly
influence buying behaviour of customers and in USA most of users easily attracted by firm’s
campaigning for different types of product and hence increasing demand of different retail
product while in china buyer’s do not easily entertain by social media and even many social sites
are ban in country but media can influence them easily which only promote country’s product.
Business environment for retail sector in US are positive and welcome all types of business that
comes from different country while china emphasizes on increasing consumption of their own
product and create very less opportunity for international firm which create conservative
atmosphere (Thürer and et.al., 2020). China is still developing country but with time
technologically advancing and might be cross US in terms of building strong business
environment and increase economy. There are number of distribution network which are highly
digitalised in United States of America and on the opposite china invest very less investment is
comparatively. However, china silk road concept able to target large number of Asian customers
by its product and services and USA is world power which gives opportunity to trade with
different part of globe easily.
Question 3
Disintermediation: It refers to the process in which the organizations choose to eliminate the
middleman and want to sell their product and services directly to the buyer in this the
organization is the supplier of the product and services and the receiver is the buyer of product
and services and there is no retailer or wholesalers are any middle men in the supply chain of
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market which the organization is choosing. Disintermediation Refer to the process of removal of
intermediaries in economy from a supply chain and cutting out the middleman from the
connection between the supplier and buyer. it creates a better transparency between the supply
chain and improve the working of the buying and supplying so that the charges can remain what
the supplier wants and no increase in the charges from the middleman and the wholesalers. it is a
direct relationship between buying and selling of product and services.
Organization who use disintermediation are Those who want to eliminate and want to have a
good transparency in the market so that they can improve they’re working. many big
organisations use this process for example Apple and L use this type of supply chain so that they
can directly connect to the buyers and made a transparency in the supply chain which improve
the relationship with the buyer and also helping improvement of the business and elimination of
middle men in the supply chain management.
Marketing intermediaries as the distribution network
Many of the producers and sellers doesn't sell their product and services directly to the consumer
and instead they use different marketing intermediaries the exit cute the necessary functions to
get the product to the final version. These intermediaries are the middleman, distributor and other
financial intermediaries which enters in the longer-term Commission with the producer and are
known as the marketing channels or the channels of distribution. manufacturers use raw
materials to make the product finalized and finished product which directly send to the retailer or
less open to the consumer (Casado-Vara and et.al.,2018). The general rule of this is that the
finished goods flow from the manufacturers to the wholesalers and then to the retailers and
finally to the consumer. every party in this distribution channel get illegal possession of goods
during their physical transfer.
1. Channel function flows
To distribute the best of the product and services to the consumer the producer utilized many
marketing channels in other ways to work in the marketing flows, in this the channel moves good
from producer to consumer and the intermediaries performed a number of marketing flows of the
activities which are done.
2. Management of channel system
It is very important for the integrity erase and the organizations to manage their channel system
through that the product can deliverd to the consumer in the best way and no thread if the middle
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men do not comply or any other issues. it is very important cost to manage the channel system of
supply for the organization (Xu and et.al., 2019).
3. Wholesalers
Wholesalers are those who take the product and services from the manufacturer and store those
products and transfer those products to the retailer and directly to the consumer and work as the
middleman.
4. Retailers
Retailers are those merchandising aspect of marketing will include all the required sell directly to
the consumer for their personal and non-business use.
5. Store retailer
There are a lot of organizations and retailers in the stores who sang in merchandising through
different stores where the consumer can come and buy the product and services.
Question 4
E business success In PC industry compared to grocery industry
E business is one of the best ways of doing the business in the modern market and it is very
important to have the best ways to improve the performance of the organizations and in the PC
industry it is very important to utilize the E business market so that they can connect to more of
the customers. PC industry is the industry who worked in the computer and personal computers
which required a good way of networking so that people get to know about the product and the
services which company is providing an online market any business other ways on which the
company can display their qualities and specification of product and they hello the customer to
compare different product on the distribution site and understand the product and take the
product. on the other hand grocery industries is very vast industries but as the groceries I’m not
getting a huge success on E business due to the freshness which people want in their grocery
items and it is very important for the people to have the best quality product and they want the
grocery product on the same day as fresh and E business sometimes took days and delivering the
product and services that’s the reasons which is making a lack in the grocery industries but on
the other hand the PC industries is getting a huge success due to the business in the market (Kuo,
Lim and Sonko, 2018).
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The future of E business for PC industry
The future of E business is very vast and everything is going online and it is very important for
the organizations to implement and utilize the best of the Internet business ways of doing the
marketing and selling of product and services and for that they need to put their product and
services on the E business platform. BC industries required a good growth in the market and for
that they need to utilize the E business in the best way so that they can attract more of the
customer (Thomas, 2016). BC industries are utilizing the business cause there are a lot of brand
which work in different countries and not have the stores in the other countries and the E visa is
a way by which the buyer who want to purchase product and services of the brand from different
countries skin buy and sell the product and it help in improving the business and the profitability
of the organization and also satisfy the consumer in their customer satisfaction. A business is
helping in getting the business improved and the PC industry is getting a boom due to a business
as everything is available related to the PC industries on the E business sites and people can buy
and sell and it also attracts the customer and also display the offers and rewards on the PC
industries.
CONCLUSION
The report concluded that global supply chain works differently and it is very important to utilize
the global supply chains to increase the profitability of the business and report conclude that the
retail environment needs development and the supply chain intermediaries are a way in which
people want to sell their product. the report further conclude that E business is very important for
the PC industries as it is enhancing their business and attracting more customers so that the
organizations and the industries can increase their profitability.
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REFERENCES
Books and Journals
Busse, C., Meinlschmidt, J. and Foerstl, K., 2017. Managing information processing needs in
global supply chains: A prerequisite to sustainable supply chain
management. Journal of Supply Chain Management.53.(1).pp.87-113.
Casado-Vara and et.al.,2018. How blockchain improves the supply chain: Case study alimentary
supply chain. Procedia computer science, 134, pp.393-398.
Koberg, E. and Longoni, A., 2019. A systematic review of sustainable supply chain management
in global supply chains. Journal of cleaner production.207.pp.1084-1098.
Kuo, T.K., Lim, S.S. and Sonko, L.K., 2018. Catch-up strategy of latecomer firms in Asia: a case
study of innovation ambidexterity in PC industry. Technology Analysis &
Strategic Management, 30(12), pp.1483-1497.
Thomas, N.T., 2016, September. An e-business chatbot using AIML and LSA. In 2016
International Conference on Advances in Computing, Communications
and Informatics (ICACCI) (pp. 2740-2742). IEEE.
Thürer, M and et.al., 2020. A systematic review of China’s belt and road initiative: implications
for global supply chain management. International Journal of Production
Research.58.(8).pp.2436-2453.
Tien, N.H., Anh, D.B.H. and Thuc, T.D., 2019. Global supply chain and logistics management.
Xu and et.al., 2019. Supply chain sustainability risk and assessment. Journal of Cleaner
Production, 225, pp.857-867.
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