Darren Kate A.

Licupa
BSTM 1

I. EVALUATION

1. Think of your favorite retailers. How have they integrated their channel system? How would you like
their channels to be integrated? Do you use multiple channels from them? Why?

Robinsons Supermarket is one of my favorite retailers, it works coordinated data frameworks for
all business channel that convey and work together. There are more effective, non-excess business
measures fused across all business channels. This empowers the customers to purchase in one deal
channel and get/return in another.
I would like to see the business likewise move towards vertical advertising framework similarly
as with flat showcasing structure, the expense duplicates with each new extra area, makes rivalry
between other business for self-space where no business profit by one another exertion as they'll be
removing their own benefit, time and assets as a proprietor yourself is spread out alongside the assets.
Various channel is something that may be something I may most likely utilize them. This is on the
grounds that it gives an alternate route to the business to reach to the customers like having an
electronic stage where they can sell things on the web and give a home conveyance framework. Every
one of those are some type of extravagance which you generally watch out from in the current age and
time and assist reach with trip more individuals while additionally maximizing the sells. Notwithstanding
that, Robinsons Supermarket likewise delivers a portion of the restrictive things which are devoured in
everyday life, they can utilize different wholesalers, retailers to market and sell those items, with the
evaluating being sensible and those results of good quality - I'll unquestionably purchase those items
from these channels too.

2. Think of your favorite stores. What do they do that encourages your loyalty? What do you like about
the in – store experience? What further improvements could they make?

Measure taken by my #1 store to expand the unwaveringness are: the store has its own
cashback and restitution plans, which persuades a client to return again to get more focuses or reclaim
the cashback. The store likewise gives free home conveyance to the normal clients. The return or trade
of items is unequivocal for the customers who hold enrollment. The individuals can likewise benefit a
free conference from the item specialists.
The in-store encounters that are generally excellent are: they keep an incredible tidiness and
cleanliness in the store. The game plan of the items is effectively available. They give free drinking
water and other reward drinks in the event that we have the enrollment. The neighborliness of the staff
is awesome. They keep an extraordinary assortment of every classification of the item. The store keeps
an incredible customer relax for the individuals who need to unwind. They have a criticism screen to
take the important input of the customers. They give let loose pick and drop administration for unto five
kilometers. In the event that a customer’s needs they can take a shopping partner alongside them all
through the store while they shop. They will help them discover the item areas, help the customers
convey their possessions, remain in the line for charging, and so forth
Further enhancements recommended by me, they can have some online stage so the
customers can shop even online for their items. They ought to be some shopping space booking office
for the ordinary customers. They shop have some base rebate offer for the individuals or premium
clients. They ought to have a tidbit slow down inside for the individuals who need rewards and are
ravenous.

3. Case Analysis of Dell. Read the case and answer questions a and b.

What if a manufacturing company didn’t need to have any inventory? Imagine the reduction to
cost structure that could be achieved by simply getting rid of the need to carry huge amounts of
finished goods on its books – and eliminating the nail-biting stress of waiting until those goods are
sold. For Michael Dell, founder and CEO of Austin, Texas-based Dell Corporation, very little
imagination is required. He has built a company with annual revenues in excess of $40bn entirely
around a vision whereby manufacturing of an individual item does not begin until it has been
ordered by a customer. Every single Dell product has an end user’s name on it before it even
leaves the factory.
Visiting a Dell factory gives you an idea of just how effective Michael Dell has been in executing
this supply chain management philosophy. At the company’s Irish factory near Limerick, for
example, there are 40 doors at one end of the factory that deliver the parts needed to build a variety
of products – including desktop computers and servers – and 40 doors at the other end of the
factory where the finished goods are dispatched to be delivered to customers. The company never
holds more than four hours’ worth of parts inventory at any time – and Dell is not even considered
to have acquired the parts until the moment they are offloaded from a truck and brought into the
factory. The same process is used in Dell operations throughout the world, including the company’s
showcase factory at its US headquarters in Austin.
After the parts are unloaded, the process of building individual, custom-made systems begins.
All the parts that are needed for the assembly of a given system are placed in a plastic box that
passes along a conveyor belt and is then routed to an assembler. Each part is scanned – along with
a label denoting the name, address and details of the buyer (including the specifications of the
system that has been ordered) – so that individual parts are associated with individual systems sold
to individual buyers. This means that if a problem with a given part is discovered at any point, the
company knows exactly which systems contain that part and can notify the owners about the need
for a fix. In addition, it means that if a buyer reports problems, Dell’s technical support system can
pull up the details of what was installed in the system at the factory, when it was assembled, and by
whom.
Over the past year, Dell has started to build products other than desktop, server and notebook
computer systems using this method of manufacturing – and recently changed its corporate name
(from Dell Computer Corporation to Dell Corporation) to reflect this fact. It is all part of the ‘Dell
model’ that Michael Dell says is just as applicable to manufacturing computer printers, handheld
computers and MP3 players as it is to a personal computer. ‘If we look across the whole $800bn IT
market, we see that there is a kind of standardisation and commoditisation occurring across many
different product areas, so we have tried to understand what the best opportunities are for us to
deliver value’, he said in a recent interview. Mr Dell also said that the direct manufacturing model
gave his company an unparalleled insight into the kinds of product areas that his company should
move into – as well as those from which it should retreat. ‘One of the magic abilities of any great
product company is to understand technologies and customer requirements and come up with the
perfect combination to solve a problem’, said Mr Dell, although he admits that customers
sometimes do not realise that they have a problem that technology can solve. ‘The customer is not
likely to come and say they need a new metallic compound used in the construction of their
notebook computer, but they may tell us they need a computer that is really light and rugged.
Where some companies fall down is that they get enamoured with the idea of inventing things – and
sometimes what they invent is not what people need.’ He said that by using the Dell model, he
knows very quickly when a product isn’t going to sell. ‘When we launch a new product, we know
within 48 hours whether or not it’s going to work’, he says. ‘We had a Web PC that didn’t turn out so
well. But if you have no experiments, then you have no success. Occasionally, you just miss.’
Mr Dell concluded that by having a sale, manufacturing and distribution model where the
maximum possible number of variables are under its control, the company has been in a position to
grow significantly during the recent economic downturn. ‘We have a fortunate situation in our
business’, he said. ‘To the extent that there are tensions in the economy, we tend to be a more
attractive choice. We have done well in tough economies – and we have a very efficient system that
works well in many different economic environments.’

Questions
a. Taking the case of computer products, identify the supply chain for the distribution of these
products and explain the channel service needs of customers. To what extent are store- and
non-store-based distribution channels alike or different in terms of the channel functions they
perform?
 Doing without the retail course permitted Dell to at the same time improve edges while
offering buyers a superior cost on their PCs. This move likewise allowed customers to arrange
PCs as per their particular processing needs. The sensational improvement in customers
esteem that came about because of Dell's remarkable appropriation technique pushed the
organization to a main market position. Dell joined operational and cycle development with a
progressive dissemination model to produce enormous expense investment funds and
extraordinary customer esteem in the PC market.
Retailers depend on a framework that provisions them with product to market to
purchasers. To obtain stock and guarantee they have the items they need to sell, connections
should be set up with organizations that work inside the retail store network. The retail store
network comprises of producers, wholesalers, retailers, and the purchaser (end-user). The
distributer is straightforwardly associated with the producer, while the retailer is associated with
the distributer. Non-store retailing is the selling of merchandise and enterprises outside the
bounds of a retail location, off the premises of fixed retail stores. This conveyance channel can
be isolated into direct selling and distance selling. Non-store retailing, now and then marked
'home shopping', is a generally little bit of the absolute retail movement in the United States. Be
that as it may, it's developing altogether, driven by the extension of internet business.

b. What are the advantages and disadvantages of the ‘Dell model’ of sales, manufacturing and
distribution? 3. How might Dell sustain its competitive advantage in an increasingly competitive
and mature market place? What channel strategies should it consider to enhance its value
delivery network? Justify.
Lower holding costs helps, store that were tied up in inventories be utilized for
development and upgrades of the firm. For a model the data stream between the client, provider
and the firm assume a basic part in the Dells' case. More speculations were conceivable in the
ICT – Information Communication Technology due the weighty saving money on inventories.
Completely robotized innovative gathering offices were dispatched from the supports that in any
case would have been spent on keeping high inventories. Then again, the zones recently used
to store inventories were utilized for other more gainful employments.
Dell faces over reliance on one item, leaving aside the broad customization of that item.
On the off chance that the firm has incorporated activity, more various items can be produced in
one area. At the point when the plants are scattered, the quantity of various item that can be
produced in a given area, capability of acquiring economies of scale, will be less.
One of the wellsprings of Dell's underlying upper hand can be ascribed to its renowned
direct selling and work to-arrange approach. This without a moment to spare system permitted it
to work with the least stock level in the business. Decreasing abundance stock furnished Dell
with a huge expense advantage as part costs devalue as much as 1% week after week in the
hardware business. Direct selling has likewise permitted Dell to sidestep delegates, for
example, wholesalers and retailers, lessening costs significantly further. Furthermore, Dell
offered adjustable alternatives that end up being client driven and alluring.
In the competitive PC market, Dell had to grow new abilities, for example, selling through
retail channels and playing make up for lost time to its rivals' new items. In any case, doing so
disintegrated its center skills. All things being equal, Dell ought to safeguard and fortify their
current abilities as opposed to growing new ones. Dell can endeavor to secure its homegrown
specialties and shield against its rivals' worldwide bit of leeway. By reacting to neighborhood
needs, Dell can reshape its PCs to suit the purchasers' taste.
The channel strategy should it consider to enhance its value delivery network is
Distribution Channel, it manages the delivery of the item to the customer. How great the
distribution channel is, depends how adequately the channel satisfies the customers need of
time utility and place utility just as keeping the channel structure under reasonable levels.