MSG Team's other articles

10539 Organizations and Types of Relationships

Organizations today live in highly dynamic environments. Essentially the existence and growth of the business is dependent upon several external and internal factors such as highly segmented geographical markets, aggressive competition and shorter life cycle. These and many more factors exert a lot of pressure on the Organizations to innovate both in terms of its […]

12540 Building Strong Brand Equity

Strategic brand management’s goal is to develop strong consumer based brand equity. To reach these goal companies have to design and execute well thought marketing programs. However, task does not end at executing marketing programs, companies to have to construct brand equity measurement system to understand the impact of on consumer mind. One thing to […]

10982 Retail Management – Meaning and its Need

What is Management? Management refers to the process of bringing people together on a common platform and make them work as a single unit to achieve the goals and objectives of an organization. Management is required in all aspects of life and forms an integral part of all businesses. Retail management The various processes which […]

10961 Report Preparation – Characteristics of a Good Report

The market research is normally outsourced to third party agencies by organizations and in turn they create a professional report to the organization. These reports are preferably provided to senior officials who are the critical decision makers of the organization. Hence these reports need to be exclusively efficient and well formatted and the matter should […]

12567 Analyzing Business Markets and Business Buying Behaviour

A market consists of two parts consumer market and business market. Companies manufacture products for consumer market but business market is equally large and strong. Typical business markets consist of manufacturing plants, machinery, industrial equipments, etc. Companies need to study and analyze factors affecting business markets and business buying behaviour. In a business market, organizations […]

Search with tags

  • No tags available.

Leadership at the market place doesn’t come by easily. Organizations have got to work towards it by innovating their product and value proposition all the time. Establishing customer relationship with a long term perspective becomes imperative. Today the customers are highly knowledgeable and demanding. The rules of the game have changed along with the change in the way that the Organizations operate.

No doubt the customers expect innovation in the product and the best quality; they also expect to pay the right price. The fact that the Organizations need to find ways to keep their costs low in order to be competitive in the market has been understood by one and all. However, how well Organization designs and implements process efficiency goes a long way in steering the Organization towards market leadership too.

Corporate companies and the new age brand leaders like IBM, HP, Dell, GE, Phillips, Xerox as well as automotive companies including Ford, GM, Toyota, Honda and others like Wal-Mart have increasingly focused on growing their product leadership at the markets and internally they have voted for operational excellency as a part of their Organizational culture.

Using new methods of working, leveraging on technology, most of these organizations have changed their operational processes as well as their business model in tune with their product strategies. The result has been the birth of seamless supply chain that has brought together suppliers, manufacturers, transporters, logistics providers, warehouses as well as all the intermediaries involved in the entire supply chain on one virtual platform, eliminating a huge amount of tasks and duplication of work at all levels.

Further technology has automated a lot of decisions as well as tasks leading to huge reduction of resources as well as time and cost while increasing the efficiency of the entire supply chain.

Let us look at a simple case of what happens at Wal-Mart with a normal transaction. When a customer makes a purchase, the system automatically calls for a replenishment of the stock of the particular item from the forward stocking location into the shelf.

Further, end of the day, SKU wise sales data gets transmitted to its suppliers who in turn process the information along with their inventory and as per pre planned re-order levels, generate new shipping orders, which is processed and the shipment is delivered to Wal-Mart within a few hours or as per pre planned delivery schedule.

RFID tagging eliminates any need for manual checking and inspection at Wal-Mart’s end. Such automation has eliminated the need for resources to be employed both at Wal-Mart as well as its supplier’s end. There is a huge saving in terms of space, resources and time for re-ordering, processing and shipment from supplier’s end as well as in warding, inspecting, stocking and replenishing the bins at the showroom.

Similarly multiple warehouses and stocking points at different stages are eliminated paving way for huge amount of savings. Usage of technology has not been limited only to a few functions or areas of supply chain, but encompasses the entire supply chain including payment process too.

As per the agreed terms, the system triggers payment either on the due date or at the point of sales at the counter and generates a cheque automatically or directs the finance to release online payment.

If you wonder how it is that Wal-Mart is able to price its products aggressively and continue to lead through its pricing strategy, the answer lies in its ability to find ways to optimize its operations and processes to bring down the costs. These Organizations work with single minded focus on retaining their leadership and improving their value proposition and relevance to their customers at all times.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles