The Changing Face of The Industrial Supply Company – Current Trends
From the digitization of sales to the modernization of field sales teams, the industrial supply company is a fast-changing business. While technology is a great asset in the development of a customer base, digital technology cannot replace the hands-on experience of a trained tool tech. Mobile devices may be replacing cute colored brochures, but nothing can replace quality customer service. Web sites, digital brochures, and quick access to product information have changed the speed at which the industry operates, but without quality products backed by a reputable service team, order speed is just a faster way to frustration.
That said, a construction/industrial tool and supply company that does not keep up with current trends is not going to stay in business very long. Lets ' take a look at some of those trends.
Trends the Customers Love
Online Pricing. With the integration of digital technology and mobile devices, very little information is more than a few keystrokes away. This is just as true at the construction site as it is sitting at home or in your office. The days of traveling from supplier to supplier or spending hours on the phone are gone. Customers now know that they can access prices for all of their safety, supply, and equipment needs any time, any place. Not only does this help them get the best possible deal, but it makes keeping within budget a whole lot easier. If your site still says
Also, Amazon has emphasized on building “several distribution centers around the world to hasten deliveries”(Hof and Himelstein, 1999). Coupled with its software it provides a “laser-like focus on the buying experience”(IT Business Edge, 2012). Such a system and service is what draws customers towards Amazon and subsequently retains them.
Li & Fung is a long-standing Hong Kong based company that that has evolved from an export trading company to a coordinator of value-added services across the entire supply chain in a global, open manufacturing environment. They assess the clients’ product and delivery needs and orchestrate supply, manufacture and delivery in a very tailored and specialized way (Claremont Conversation Online, 2008). In the prevailing business environment, it has not been cost effective to trade with SMEs since production orders were below the factory minimums. Through the implementation of an internet portal, they have secured their position with the SME market while maintaining economies of scale.
By grafting its system of custom direct sales onto the Internet infrastructure, Dell has transformed these activities, creating an innovative and efficient procurement, production, and distribution network. The innovative advance made by Dell in deploying Internet communication as the foundation of its production network, is a process innovation. Although to some extent, the Internet has enabled Dell to create a new product -- a PC custom-configured through Internet communication -- it is the process of organizing flows of materials and information within its network, from customer order to procurement, production and delivery, by means of Internet communication, that defines the innovation at the Firm. The case supports this notion by stating “While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer
Todd (2012) has interviewed employer association representatives and examined their public statements and submissions. From her research, she questions whether the changes to the industrial relations system that employer associations advocate would enhance productivity. With regard to issues such as penalty rates and job security, there is evidence that these relate to cost cutting and enhanced managerial prerogative rather than productivity. Discuss
1 two major market areas: The first was to supply products of a type similar to our current electromechanical designs to North American aircraft manufacturers. The second was to design and manufacture electronic products for Europe and North America.
Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.
Bodie Industrial Supply, Inc is a full service distributor of top line, brand name, new and used certified machine tools, maintenance parts and related equipments for the construction, utility and farming markets. The demand for equipment is relatively cyclical, with Bodies having a slight increase in sales to farming markets in the summer. Bodie’s has seen a huge sales growth increase in 2003-2004 of 72% and 29% in 2004-2005. This is mostly due to an increase in net sales and keeping a constant level of costs of goods sold.
Industrial psychology is concerned with people at work. It is also called personnel psychology. A closely related field is known as organizational psychology. Traditionally, industrial psychologists have assessed differences among individual workers and have evaluated individual jobs. Organizational psychologists generally seek to understand how workers function in an organization, and how the organization functions in society.
2) What advantages does Dell derive from virtual integration? How important are these advantages in the auto business?
While researching on line I came across an article that described the affect that the Internet is having on supply chains today. “E-enabled supply chain management is fast emerging as a core strategy that organizations worldwide are adopting for sustainable business advantage”. (4)
As stated in the case study of “ On-Time Package Delivery”, the first year of business was successful, bringing in revenue and steady customer need in the market for the service. Customers were many big firms and businesses in large cities. Also, they emphasis the importance of their employees, especially their sales force. The sales force is not only responsible for generating business and relationships with customers; they are the face of the company. These are the representatives that customers deal with directly and voice their opinions to. The next category of the sales force of On-Time is the Key Account Managers. They are responsible for the big accounts in the company, such as corporate accounts. The company became in
The Scotts Company started selling hardware and seeds in Marysville, Ohio in 1868. It specializes in seeds, fertilizers, peat, potting soils and other organic materials. By 1995, Scotts was the world’s #1 marketer of lawn and garden products. European operations were launched in 1993, with HQ in Lyon, France, and additional five European businesses acquired in UK, France, Germany, Austria and Benelux.
According to the customer contact approach proposed by Chase and Tansik [1,6,7], customer contact activities should be decoupled from non-contact activities to do justice to their different design requirements and maximize the efficiency of the service delivery system. Consequently, service organizations consist of a front stage and a back stage. In the back office customer contact is passive or nonexistent, service processes may be designed with manufacturing-like principles in mind [6]. The process may take advantage of standardization and automation to enhance the efficiency and effectiveness of operations. While in the front stage customer contact is high and active, it brings about unavoidable inefficiencies, and the human relation skills become a dominant factor in designing the process [6]. Study [8] adds that moving some of the back-stage functions from developed areas (or even countries) to underdeveloped regions may increase greatly efficiency because of the reduction in labor costs and taxation. 2.2.2 Decoupling for Speed, Quality and Sales Opportunities However, back-stage tasks need not only be viewed as tasks where
It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics
Consumers have many choices when deciding where to purchase their goods. While retailer managers are deciding how to win the consumer’s business and increase revenue, they are also constantly trying to figure out ways to reduce costs. Technology helps retail managers improve areas of inventory and supply chain management as well as customer satisfaction and loss prevention (Green, 2002). This paper explains how technology