Gnc Holdings
|
GNC Holdings, Inc. | Operations/Supply Chain Management Overview and Analysis | | | | | |
Executive Summary
Background:
GNC was founded by David Shakarian in 1960s, and specialized in yogurt and other healthy food such as honey, grains, and “healthy sandwiches”. Due to increasing demand, GNC expanded stores throughout the United States during the 1970s. However, the emergence of other competitors in the external environment and poor management internally lead to a difficult period of time for GNC during the 80s. After Jerry Horn took over as President and implemented major changes in 1985, GNC had a fresh start and continued to grow. GNC is now the largest global specialty retailer of nutritional products: vitamin, mineral, herbal, and other specialty supplements as well as sports nutrition, diet, and energy products.
Order winner:
GNC not only provides top quality products but also provides the top quality in customer service. GNC’s order winner is top quality. GNC provides superior levels of performance in their products by having a “truth in labeling policy.” High attention to research and new scientific discovery aids in GNC’s principle of quality first. They are “constantly updating formulations to optimize quality, efficacy, and deliver of active ingredients” (GNC Livewell). The GNC brand goes through several checks to ensure quality including: raw materials testing, purity testing, potency testing, product freshness and package integrity, product traceability, and microbiology testing (Quality you can trust).
Supply chain: Recommendations: 1. Better real-time information about material requirement and production schedules 2. Find ways to keep drawing in potential new franchisees to sell the finished goods 3. Continued observation of franchise compliance with GNC’s policies
Competitive Priorities:
The Increase in internet businesses within the supplement industry has brought on distinctive competitive
GNC Holdings, Inc. | Operations/Supply Chain Management Overview and Analysis | | | | | |
Executive Summary
Background:
GNC was founded by David Shakarian in 1960s, and specialized in yogurt and other healthy food such as honey, grains, and “healthy sandwiches”. Due to increasing demand, GNC expanded stores throughout the United States during the 1970s. However, the emergence of other competitors in the external environment and poor management internally lead to a difficult period of time for GNC during the 80s. After Jerry Horn took over as President and implemented major changes in 1985, GNC had a fresh start and continued to grow. GNC is now the largest global specialty retailer of nutritional products: vitamin, mineral, herbal, and other specialty supplements as well as sports nutrition, diet, and energy products.
Order winner:
GNC not only provides top quality products but also provides the top quality in customer service. GNC’s order winner is top quality. GNC provides superior levels of performance in their products by having a “truth in labeling policy.” High attention to research and new scientific discovery aids in GNC’s principle of quality first. They are “constantly updating formulations to optimize quality, efficacy, and deliver of active ingredients” (GNC Livewell). The GNC brand goes through several checks to ensure quality including: raw materials testing, purity testing, potency testing, product freshness and package integrity, product traceability, and microbiology testing (Quality you can trust).
Supply chain: Recommendations: 1. Better real-time information about material requirement and production schedules 2. Find ways to keep drawing in potential new franchisees to sell the finished goods 3. Continued observation of franchise compliance with GNC’s policies
Competitive Priorities:
The Increase in internet businesses within the supplement industry has brought on distinctive competitive