Synnex Case Essay

In addition increases the costs due to out of date and damage lots of inventory, which are also leading to high shrinkage level for the retailer. It is possible to overcome these barriers and enhance the company’s reputation, increase customer satisfactions including high level of profitability by practising good inventory management system in place (Warren, Reeve, & Duchac, 2013).

China’s underdeveloped infrastructure, in particular the land transport system and connection between different forms of transportation, slowed down distribution, increased logistic costs, and finally hindered expansion into rural regions (p.13). As a result of this slow transportation, Wal-Mart’s two distribution centers couldn’t serve the entire country adequately. On the other hand, these distribution centers were significantly underused due to small amount of stores. Consequently, the retailer couldn’t benefit from cost saving through its distribution approach (p.14). Furthermore, communication with the retailer’s 15,000 local suppliers was inefficient and costly due to the lack of an information-technology network (p.14).

Selection of distribution locations that can give a suitable place for customers to purchase company products is a very important way to enhance the distribution advantage. Reliable delivery timing is another point that Siemens can build on to create the needed differentiation through distribution. As Siemens depend on partners in many locations all over the world to perform the task of distributing its products, providing the needed training and support for those partners can help to enhance the distribution differentiation over competitors.

Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.

The sluggish sales in the furniture industry can account for the increase in inventory days. Haefren inventory in 1994-1995 stayed on the floor for around 129 days before it was sold. The longer period that they are holding inventory is increasing their cost of goods sold. Not only are they holding inventory for a longer period of time, but they are also underutilizing their fixed assets.

To increase CAH¡¯s sales in the U.S., set up push strategy (Exhibit 4), directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. In this approach, personal selling and sales promotions play major roles. Salespeople call on wholesalers to encourage orders and provide sales assistance. Sales promotions, such as case discount allowances (20 percent off the regular case price), are offered to stimulate demand. By pushing the product through the channel, the goal is to get channel members to push it to their customers.

Everyday there is the entrance of new products and services in the market. Additionally, product innovation drives competition between multiple organizations. Subsequently, there is a shift in prices and the types of services of provided. Next, there are multiple channels in which goods and services are provided to consumers. These distribution channels include producer to consumer, retailer to consumer, and wholesaler to retailer and consumer. Moreover, supplier diversity allows for economic growth. In some instances it may be difficult for diverse businesses to obtain capital upon start-up. However, many of the supplier programs provide networking opportunities to those who encounter any

The corporation is seeking data to determine the optimal course of action for distribution, referred to hereafter as the supply chain. This analyst has researched several supply-chain strategies. These strategies will be presented in this report. The analyst will also provide a concerted

A stockout in retail does the opposite of what the store purpose is. Stockouts cost stores and businesses money. A stockout costs retailers as much as eight percent in sales, not to mention the profit loss that is experienced by manufacturers (Dong, Xu, Yin, 2016). In addition to that, the business relationships between the stores and the

ensure that the company stays current and ensures that there will be a wider range of consumers shopping in-store, resulting in higher sales volumes and sales revenue generated.

“The Company’s inventories are reported at the lower of cost or market. Inventory costs include material, conversion costs, freight and duties and are determined by the first-in, first-out method. The Company reserves for slow-moving and aged inventory based on historical experience, current product demand and expected future demand. A decrease in product demand due to changing customer tastes, buying patterns or increased competition could impact Coach’s evaluation of its slow-moving and aged inventory and additional

BriefCam Incorporated into IndigoVision’s Control Center v15.0 Release as Sole AI Solution for its Resellers & 15,000+ Customer Installations

Hello Kenneth, Agree. There is a lot to factor in when deciding to purchase excess inventory and I don't think the answer is that simple because of those factors. Having excess inventory can be a detrament on recouping your expenses, and as you pointed out, the additional expenses that went into obtaining

Synnex’s aligns itself with the guiding principles of visibility, velocity and value to always achieve maximum benefit for its customers, employees

Inventories increase when purchases are made or when goods are returned by customers. Inventories decrease as a result of sales, consumption of goods, or when goods are returned to vendors.