Supply Chain Paper

982 WordsNov 18, 20064 Pages
Introduction The area of business that we have decided to research is the world of automobile dealerships. When discussing the supply chain of car dealerships, it is important to discuss both their "brick and mortar" facilities and their organizational web sites. Both the "brick and mortar" facilities and the web sites play a vital role in the success of modern day car dealerships, so it is important to discuss both. First, we will the "brick and mortar" environment. Brick and Mortar Supply Chain Describing the supply chain of a traditional "brick and mortar" automobile dealership is very similar to explaining the supply chain of a typical business-to-consumer organization. The suppliers provide the materials to create parts for the…show more content…
Many people dislike going to car dealerships because they do not like pushy salespeople or haggling for an acceptable price for the vehicle they are searching for. The web site provides an easy way to get a quote for a price that the consumer may like and go to the dealership to finalize the sale. The web sites that provide this type of service receive income from the dealerships that provide the lists of their cars and quotes. Most of the time the quoted price is fair because most of the time individuals who use the web to get a quote have already done their research on the World Wide Web for prices on the vehicle he or she is interested in. So how does the supply chain differ than a "brick and mortar" supply chain? Like the "brick and mortar" supply chain the car manufacturers are important to the supply chain. The car manufacturers produce the vehicles that end up sitting in car dealerships or warehouses ready for distribution. Car dealerships are the next key component that makes the supply chain work. The car dealerships provide web sites such as newcars.com with a listing of their cars with its corresponding quote. The web site is paid by the car dealerships to display their cars and quotes online. The web site then must pay for their registered domain name, internet marketing and web hosting costs. There is also cost involved in the designing and re-designing of the web site to appeal to those visiting
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