Eliminate the Middleman

1779 Words8 Pages
Introduction

The process of managing modern supply chain involves a lot of effort from people that are highly trained, motivated and experienced. Despite the traditional job descriptions as distributers’ purchasers and producers, in today’s competitive world we also need good financial, executive, operational and customer service officers. Everything’s more complex and a lot of processes need to be done right in order to run successful business from this caliber. Revolutionary changes are introduced, combining the good old way of doing things right, with the new technology and innovations, also brand new ideas and concepts mixed with the traditional labor power and management. The most difficult part here is to find the perfect balance
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For the market in which TS operates and produces the products for UST, they are still the best in what they do. Followed by continuous innovation, improvement and expanding the horizons in logistics and cost saving strategies, UST should definitely consider to hold to TS at least in this market segment.
The other plan of UST was to peruse a new supplier or suppliers, preferably from China, in order to enter the Chinese market. UST as we know are a premium product brand, offering low product prices, it’s extremely difficult for them to find the suitable supplier, who will provide improved quality by the lowest prices. Another interesting fact is that China is still one of the biggest manufacturers, so maybe the future of UST expansion, isn’t so bad after all. Until now UST were only selling premium products in the highest pillar of the market. Now maybe they need to move one level down, to the middle market place. UST found out that their biggest and premium supplier, TS, is planning to enter this market segment. If this happens in the near future UST will be in trouble. Only solution for this, that is previously and many times mentioned above, will be to find another Chinese supplier as fast as possible.
As we all know it’s very difficult to enter in a new foreign market. There are
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