preview

Dm-Drogerie Case

Better Essays

1 Introduction

Almost everyone has heard or read about the successful drug retailer dm-drogerie markt GmbH & Co. KG (dm-drogerie) that opens more and more stores in Germany and abroad and that operates in highly competitive markets. The aim of the following case study is to present this ambitious company and show how it is performing against its key competitors.

The case study starts with a short description of dm-drogerie's corporate history including general facts about its business development, its product and service range as well as the development of its revenues in recent years.

This is followed by a SWOT analysis trying to provide an overview of dm-drogerie's economical strengths, weaknesses, opportunities for the future …show more content…

Its extensive use of IT infrastructure enables accurate paper less order picking, barcode-enabled inventory control, efficient and tidy picking methods as well as quality control in logistics. dm-drogerie's IT infrastructure is coordinated by its subsidiary FILIADATA GmbH. In co-operation with IBM Global Technology Services and SAP, FILIADATA was able to implement new IT systems which allow dm-drogerie to operate in a more efficient way and at lower costs than its competitors. The company's distribution centers ensure timely deliveries and increase the profitability by reducing operating costs.

Excellence in Supply Chain Management dm-drogerie attaches great importance to its partners and suppliers. For an optimized supply chain, it is necessary that all companies involved co-operate as efficiently as possible. dm-drogerie has core competencies in organization and co-operation which contribute to the company's success. Core competencies are a bundle of specific, individual skills that lead to a competitive advantage. dm-drogerie already tried to optimize its supply chain in the early 1990s by introducing a new industrial communications department. It was planned to improve the involvement of the suppliers and to enable dm-drogerie to focus on the cross-company coordination of business processes. dm-drogerie wanted to find out how certain suppliers were judged by dm-drogerie's different departments to receive a better understanding of the company's business

Get Access