Amazon.com, Peapod, Dell, and many furniture manufacturers use push-pull supply chain strategies. Describe how each of these companies takes advantage of the risk-pooling concept. To better understand the strategies used by the three (3) companies and furniture manufacturers, the definition of Push or Pull is established below: Push Strategies – when the manufacturer uses its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users. Pull Strategies – when a manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product thus inducing the intermediaries to order it. The Figure below illustrates the Push-Pull bounderies of the three (3) companies and furniture manufacturers:
As the services and products needed by the Customers (Pull) flow along the pipeline, they will be sent (Push) to the Furniture Comapanies for Production. This process will be the same for Dell in assemblying their Computers, Amazon.com and Peapod will act as distributors using the
Explain how demand for a product like Television can be shaped? How does this compare to ways in which demand for a product like Canned Soup can be shaped? The demand difference between the Television and Canned Soup is both variable and complimentary. Televisions, in a very global and technology based environment, the Television had become a commodity comparable to rice, best thing is – television don’t expire. Mass Media, Politics, Health, Sports, Emergency Management and Education can now be done using the Television – almost all household, commercial and work place has one. Manufacturers are now fighting for the most advanced technology available to produce the most economical and wide platform. The television does not choose race, color or location – it basically became a requirement. The need of man for Entertainment and Information is what fuels the continuous development of television – he must have one, man demands it. From CRT to Plasma to LED’s – Samsung, LG-Philips, Sharp, Sony, TCL and JVC are in constant competition for the widest, thinnest, lightest and cheap television. Canned Soup, in most part of Asia just like Japan, Vietnam or China and even in the Philippines where food is cooked and eaten fresh most often, the demand for canned goods such as soups are small. In the Philippines, as an example, canned goods are only eaten during emergencies (i.e. in evacuation sites) or during rush hours (no time to cook) – but, it’s very different in the US, where everyone is rushing or working double jobs, everything must be instant. Because of this reason, the demand must be developed based on type of packaging, cooking process, content and flavor. Demand can be based on Beliefs (i.e. Halal), Regional Location (i.e. Asia or Americas) and Specifics Requirement (i.e. Military). Creating the demand for Canned Soup is different than creating the demand for Televisions. Although, there are also technical and social researches made for food products, creating the demand for television is easier. The audio and visual requirements are different compared to taste and nutrition. BUT – both can complement one another, when advertising food, television is better compared to radio or paper. Isn’t it delicious to see a smoking, thick and flavored soup in your television? 3.
You are the CEO of a small electronics manufacturing firm that is about to develop a global strategy. Would you prefer a speculative strategy, hedge strategy, or a flexible strategy? Would your answer to this question change if you were the CEO of a large electronics firm?
Discuss a recent example of an unknown-unknown risk that proved damaging to a supply chain. Explain especially how each of following strategies might have mitigated this risk; a.
Invest in Redundancy.
Increase velocity in sensing and responding.
Create an adaptive supply chain community.
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