1

Project Report

Submitted to
B. Y. K. (Sinnar) College of Commerce, Nashik - 5
SY BBA(IB) Roll No.14 , Seat No.
Year: 2022 – 2023

By

(Chhajed Gautam Deepak)

Guided by:
(Ms. Sunita V. Deshmukh)

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University Seat no. :

Gokhale Education Society’s

B.Y.K. College of Commerce

Prin. T. A. Kulkarni Vidyanagar, Nashik – 5.

‘NAAC’ Re-accredited with Grade ‘A’

ISO 9001-2015 Certified College

Certificate
This is to certify that Mr. Gautam D. Chhajed of SYBBA (International Business),
Roll No.14 has undertaken and completed the Industrial Visits and Business
Exposure Project Work as required by the rules of Savitribai Phule Pune University
for the year 2022-2023

Date: / / Project Guide Principal

(Ms. Sunita V. Deshmukh) (Dr. V. N. Suryawanshi)

Date: / / Internal Examiner External Examiner

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406 A - International Warehouse & Supply Chain

Management

Index

Sr. No Topic Signature of

Teacher
1 3PL with FedEx
Wholesale platform Web-based:
2 Wayfair
Overview of Fishbowl along
3 with The Hershey Company

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CONTENTS

1) Title Introduction
2) Objectives of the survey / interaction /interview /sites etc.
3) Purpose of the developed software
4) Methodology
5) SWOT / SWOC analysis
6) Findings and conclusion.

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3 PL with FedEx

Introduction :-
3 PL stands for Third Party Logistics in supply chain management . 3 PL companies
are Service provider that offer enterprise management service such as packing,
warehousing, transport and fulfillment. In simple words A 3PL (third-party logistics) is
a provider of outsourced logistics services. Logistic services encompass anything that
involves management of the way resources are moved to the areas where they are
required

A third-party logistics company is at its core an outsourcing services business that

allows eCommerce businesses to shift order fulfilment responsibilities to the 3PL
provider. An eCommerce company can simply receive orders from customers through
their platform and leave all other duties to the 3PL (3rd party logistics) company.

A 3PL company typically handles activities that require extensive infrastructure

including, inter alia:

 Warehousing solutions for the storage of goods that an eCommerce business

sells.
 Generation of AWBs and packing slips.
 Supply chain management solutions to facilitate the flow of goods within the
business.
 Distribution services to help eCommerce businesses to plan and control the
movement of goods.
 Materials handling to ensure due care and protection of goods stored in a
warehouse or moving through the supply chain.
 Delivery and collection of goods to a
 nd from online sellers.
 Shipment of orders to end-consumers and handling reverse logistics.
 Customer support service to facilitate grievance redressal and client servicing.

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Why Should you choose 3PL

Access to specialized services: 3PLs have expertise and experience in various areas
such as transportation management, warehousing, and inventory management. They
can offer specialized services that a company may not have in-house, such as customs
brokerage, cross-docking, and fulfillment services.

Commitment: 3PLs are committed to providing the best service possible to their
clients. They have a vested interest in ensuring that their clients' logistics needs are met
efficiently and effectively, as their reputation and future business depend on it.

Access: 3PLs have established relationships with carriers and other logistics providers.
This means they can often secure better rates and services than a company could
negotiate on its own.

Regaining focus: By outsourcing logistics tasks to a 3PL, a company can focus on its
core competencies, such as product development, sales, and marketing. This allows the
company to better allocate resources and improve overall efficiency.

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Growth in uncharted territories: A 3PL can help a company expand into new markets
and geographies by providing local expertise and knowledge of local regulations and
customs requirements.

Customer satisfaction: 3PLs can help improve customer satisfaction by providing

faster and more reliable delivery times, better tracking and visibility of shipments, and
efficient returns management.

Reduce risk: 3PLs can help reduce the risk of supply chain disruptions, such as
natural disasters or labor strikes, by having contingency plans in place and alternative
sources of supply.

Reduce expenses: By outsourcing logistics tasks to a 3PL, a company can often

reduce its operating costs by eliminating the need to invest in expensive logistics
infrastructure and personnel. Additionally, 3PLs can often negotiate better rates with
carriers and other logistics providers, resulting in cost savings for the company.

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Objective of 3PL Services

A logistics management company is responsible for arranging safe and speedy

transportation, providing warehouse solutions, as well as facilitates the distribution of
materials. They also look after the export and import of goods in some cases as well.
These are some of the basic functions of a 3PL management company.

With the passage of time, some of the well-defined boundaries of logistics are blurring
and logistics providers have added a number of innovation service offers. To make
sure that these are beneficial towards making the supply chain management smoother,
improvements and enhancements have to be constant. Given below are some of the
important objectives that 3PL providers can have:

 Enhanced Customer Service: One of the most important things that any
business, regardless of the nature of its operation should strive towards is better
customer service. This involves better handling of transportation and the overall
logistics operation. This can be done by opening up new distribution centers in
places where the service helps transports goods and raw materials and widen
their overall network of carriers and delivery services.
 Enhanced Efficiency: Efficient service is one of the most important things that
ensure the success of the business. Hence, 20Cube logistics constantly works
towards securing enhanced efficiency in all aspects of service. Overall efficiency
can be increased by developing a highly cost-effective system of transport and
reducing overhead costs and well as simplifying the order processing.
 Fast Response: In some cases, the efficiency of the service of an organization is
measured against the length of their response. In logistics, this is especially
important. This is because when it comes to packing and transporting goods,
time is of the essence. Some goods have to reach their destination within a
specific period of time as the demands are huge. Hence, fast response time is an
important objective of third-party cargo transportation services.
 Decreasing Distribution Costs: One of the ever-present long term goals that
most logistics companies have is the reduction of costs. By decreasing
transportation and warehousing costs, the business can ensure increased profits
and also attract more customers with attractive rates. Consolidating shipment
can bring down energy costs, as will maximize transport routes. When these cost
savings are also enjoyed by the customer, the benefits to the 3PL service is
double fold.
 Better Customer Relationships: This can be ensured only when the above-
mentioned objectives are realized. As the success of a logistics business is solely
dependent on how the potential customers perceive them, most third-party
logistics providers make sure that the customers are happy and satisfied with the
service provided.
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1. Order is sent to FedEx via Technology Functionality

XML, Internet, customer  Visibility: Complete inventory and order
calls, EDI and is processed visibility across multiple facilities through
by the FedEx Order network capabilities.
Management System.  Connectivity: Operations and IT support
2. Order information is sent infrastructure in place across multiple partners
from FedEx Information and locations.
Network.  Automated Business Rules: Executes
3. Order is transmitted to the processes, tags orders based on pre-set
appropriate Distribution customer requirements.
Center. The order is  Order Management and Executions: Order
processed, picked and packed process from inception to delivery. Process
and shipped to the end integrates order management system with
customer. warehouse management systems.
4. The package is picked up by
FedEx, scanned, and
delivered to the end
customer.
5. The Fedex customer is billed
for the order.
6. If the end customer decides
to return the product, the
returns are processed in
reverse order and delivered to
the appropriate network
distribution center.
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Value Added Services

In addition to the standard Fulfilment Services, a number of Value Added Services are
currently offered:

 Kitting
 Repacking
 Handling in Electronic Static Discharge (ESD) protected room
 Labelling
 Customized web page solution
 Stock visibility
 On line ‘Management Information’ (e.g. Order Overview)
 Assistance with arranging Fiscal Representation
 Updating Customers’ system (if applicable)
 Carrier and/or vendor management

3 PL at FedEx
 With 130 North American locations and over 600 service centers worldwide, FedEx
can help you scale up your business operations and expand the distribution network
across many cities and countries

 Using technology-enabled solutions, your business can keep an eye on all the stock
information and insights for better inventory management.

 Businesses that deal in perishable, dangerous, and hazardous goods can rely on
FedEx for safe and secure supply chain and inventory management.

 You can get expert guidance from FedEx professionals on a number of challenges
including square footage requirements, stock efficiency, loading logistics, and
transportation management.

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FedEx is basically both a 3PL Provider and a 3PL service user

FedEx as 3PL Service Provider

As a 3PL service provider, FedEx offers logistics services to businesses across
different industries, including transportation, warehousing, order fulfillment, and
customs brokerage. They leverage their global network and expertise in logistics to
provide customized solutions to meet their clients' specific needs.

 As 3PL Service Provider

FedEx can handle a wide range
of logistics operations on behalf
of their clients including
transportation, warehousing,
inventory management, and
other fulfillment, FexEx can also
provide customized logistics
solutions to meet the specific
needs of their clients.

As a 3PL provider, FedEx provides logistics services to a wide range of

businesses across different industries, including:
E-commerce companies: With the growth of online shopping, e-commerce companies
often rely on 3PL providers at FedEx to handle their logistics operations, including
order fulfillment and delivery.

Retailers: Retailers often use 3PL providers to manage their inventory, handle order
fulfillment, and coordinate shipping and delivery.

Manufacturers: Manufacturers can use 3PL providers at FedEx to handle their

transportation, warehousing, and distribution needs.

Healthcare companies: Healthcare companies often have specialized logistics

requirements, such as temperature-controlled shipping and handling of sensitive
medical equipment. FedEx offers customized logistics solutions to meet these needs.

Government agencies: Government agencies can use 3PL providers at FedEx to

handle logistics operations related to disaster relief, military operations, and other
government programs.

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FedEx as 3PL User

As a 3PL service user, FedEx may partner with other logistics providers to augment
their own capabilities or to provide specialized services that they may not offer. For
example, they may partner with a company that specializes in temperature-controlled
shipping to provide specialized logistics services to their clients in the healthcare
industry. Additionally, they may use other 3PL providers for logistics functions that
they do not offer, such as certain types of warehousing or inventory management
services.

As a 3PL service user, FedEx offers a wide range of logistics services to businesses of
all sizes. Some of the services that FedEx provides as a 3PL service user include:

Transportation: FedEx offers a variety of transportation services, including air,

ground, and ocean freight. They also offer expedited shipping options for time-
sensitive deliveries.

Warehousing: FedEx operates a network of warehouses and distribution centers

around the world. They can provide storage, inventory management, and order
fulfillment services to their clients.

Customs brokerage: FedEx can help businesses navigate the complexities of

international trade by providing customs brokerage services. This includes customs
clearance, compliance consulting, and import/export documentation.

Supply chain consulting: FedEx can work with businesses to optimize their supply
chain operations. This includes identifying areas for improvement, developing
solutions to address supply chain challenges, and implementing best practices.

Technology: FedEx uses advanced logistics technology to improve their operations

and provide real-time visibility into supply chain performance. They offer tools
attracking and monitoring systems, as well as analytics and reporting capabilities.

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Methodology:
Research methodology is a way of explaining how a researcher intends to carry out
their research. It's a logical, systematic plan to resolve a research problem. A
methodology details a researcher's approach to the research to ensure reliable, valid
results that address their aims and objectives. It encompasses what data they're going
to collect and where from, as well as how it's being collected and analyzed.

I have used Secondry data collection method in this

Secondry Data :

Secondary data means data collected by someone else earlierUsing existing data
generated by large government Institutions, healthcare facilities etc. as part of
organizational record keeping. The data is then extracted from more varied datafiles.

References
https://www.google.com/url?sa=i&url=https%3A%2F%2Fturbologo.co
m%2Farticles%2Ffedex-logo%2F&psig=AOvVaw3y-
0SY0WnJADYQXw0gKIcj&ust=1680893908759000&source=images&c
d=vfe&ved=0CBEQjRxqFwoTCODLy_X3lf4CFQAAAAAdAAAAABA
F

https://www.20cube.com/blog/the-business-objectives-of-a-3pl-provider

Chat.openai.com

Portcity logistics free guide for Third Party Logistics pdf

Chrisoula Papadopoulou pdf
https://fmhconveyors.com/en-in/blog/third-party-logistics-finding-the-
perfect-solution

http://www.fedex.com/in/supplychain/services/fs/process.html
https://www.gep.com

file:///C:/Users/1/Desktop/Black%20Book/International%20Warehousin
g%20and%20Supply%20Chain%20Management/Referances/iStock-
1134293632.webp

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SWOT Analysis of FedEx on 3PL

1)Strengths

I. Global network: FedEx has a global network of transportation and logistics

operations that can provide end-to-end solutions for customers.
II. Brand reputation: FedEx is a well-known brand in the logistics industry and
has a strong reputation for reliability and quality.
III. Cost savings: By outsourcing logistics operations to a 3PL provider, companies
can reduce their costs associated with transportation, warehousing, and
inventory management.
IV. Expertise: 3PL providers at FedEx have extensive experience and expertise in
managing logistics operations, which can help companies improve their supply
chain efficiency.
V. Scalability: 3PL providers at FedEx can scale their services up or down based
on the needs of their clients, which can help companies adjust to changes in
demand or market conditions. FedEx has a diversified portfolio of services,
including air and ground transportation, warehousing, and distribution.
VI. Technology: 3PL providers at FedEx use advanced logistics technology to
improve their operations and provide real-time visibility into supply chain
performance. The company has invested heavily in technology, including the use
of automation and data analytics, to improve its logistics operations.

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2) Weakness

I. Complexity with Carriers: One weakness of 3PL is the complexity

that arises from working with multiple carriers. 3PL providers often
work with a variety of carriers to provide transportation services to
their customers. This can create challenges in terms of coordinating
with carriers, managing communication and resolving disputes, and
ensuring that shipments are delivered on time.
II. Performance Tracking: Another weakness of 3PL is the difficulty of
tracking performance across multiple carriers and locations. This is
particularly challenging when 3PL providers are working with carriers
who have different systems for tracking and reporting data. As a
result, it can be difficult to get a clear picture of performance across
the entire logistics network.
III. Industry Jargon: The logistics industry is known for its use of jargon
and technical language, which can be confusing for those who are not
familiar with the industry. This can create challenges for 3PL
providers when working with customers who may not understand the
terminology used in logistics. It can also make it difficult for 3PL
providers to communicate effectively with carriers and other logistics
partners.
IV. Lack of Control: One of the main weaknesses of using 3PL is the
lack of control over the logistics process. Because the 3PL provider is
responsible for managing the logistics operations, the customer may
have limited visibility and control over the process. This can make it
difficult to ensure that shipments are being handled and delivered in
the way that the customer wants.
V. Dependency on Third Party Providers: Another weakness of 3PL is
the dependency on third-party providers. If one of the providers in the
logistics chain fails to deliver on their commitments, it can have a
ripple effect on the entire logistics process. This can lead to delays,
increased costs, and other issues that can impact the customer's
business.
VI. Cost: While 3PL can offer cost savings compared to managing
logistics operations in-house, it can also be costly in certain situations.
For example, if the customer has a relatively small volume of
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shipments or has unique logistics requirements, the cost of using a

3PL provider may be higher than managing logistics operations in-
house.
VII. Communication and Coordination: Effective communication and
coordination are essential for successful logistics operations.
However, when using 3PL, there may be challenges in coordinating
with multiple providers and ensuring that everyone is on the same
page. This can result in delays, errors, and other issues that can impact
the customer's business.
VIII. Limited Flexibility: 3PL providers often have standardized processes
and procedures that may not be flexible enough to accommodate the
unique needs of each customer. This can limit the ability of the
customer to customize their logistics operations and may result in a
less efficient logistics process.

Opportunities

I. E-commerce growth: With the rapid growth of e-commerce, there is

a significant opportunity for 3PL providers like FedEx to offer end-to-
end solutions for online retailers.
II. Increased demand for sustainability: As consumers become more
environmentally conscious, there is an opportunity for FedEx to offer
sustainable logistics solutions.
III. Emerging markets: There is significant growth potential in emerging
markets where logistics infrastructure is still developing.
IV. Technological advancements: Technological advancements such as
blockchain and artificial intelligence can help improve logistics
efficiency and provide better customer visibility.

Threats:

I. Competition: The logistics industry is highly competitive, with other

major players like DHL, UPS, and Amazon Logistics.
II. Economic volatility: Economic downturns or market disruptions can
negatively impact the demand for logistics services.
III. Regulatory changes: Changes in regulations, such as trade policies
and tariffs, can impact international trade and logistics operations.
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IV. Cyber security risks: With the increasing reliance on technology,

there is a risk of cyber security breaches that can disrupt logistics
operations and compromise customer data .

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Findings and Conclusion

Third-party logistics providers like FedEx have become essential partners for
businesses looking to optimize their supply chain operations. The advantages of using
a 3PL provider include improved efficiency, reduced costs, flexibility, and the ability
to focus on core competencies. FedEx is a leading 3PL provider that offers a wide
range of logistics services to help businesses improve their supply chain operations,
including transportation management, warehousing, and order fulfillment. The
company's diversified portfolio and global network of carriers and distribution centers
make it well-positioned to provide customized logistics solutions to businesses of all
sizes.However, there are also challenges that businesses must be aware of when using
a 3PL provider, such as managing relationships with carriers, investing in technology
to track performance, and effective communication with customers and partners. For
FedEx, the need to continually invest in technology and potential disruptions to
logistics operations are weaknesses and threats that the company will need to address
to maintain its position as a leading logistics provider.

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Wholesale platform Web-based: Wayfair

Definition:
Wholesale Platforms is a modern way to sell in bulk to other businesses. Instead of
transactions in-person, via email, phone or even fax, a wholesale Platforms solution
allows self-service purchases by your buyers to quickly acquire what they need with
minimal intervention. To support more in-person options, they’ll also tend to have a
mobile app geared towards salespeople for capturing sales in person or via salesperson-
led channels. A wholesale platform is a type of B2B (business-to-business) e-
commerce platform that connects manufacturers, distributors, and wholesalers with
retailers, resellers, and other businesses that are looking to purchase products in bulk.
A web-based wholesale platform is an online platform that operates over the internet
and allows users to conduct their wholesale transactions online.

Objective of Web-based Wholesale Platforms

The objective of a Wholesale Web-based platform is to provide a digital marketplace

where wholesale can connect with manufacturers and retailers to buy and sell goods in
bulk. The platform aims to streamline the buying and selling process , making it more
effective, cost –effective and convenient for all parties involved.

This platform typically offers a range of feature and tools designed to simplify the
wholesale buying process ,including

1. Product catalogs : Wholesale platform offer a vast range of products that can
easily searched, filtered , and compared
2. Secure payments : The platform provide options , which can be processed
through the platform , reducing the risk of fraud and ensuring timely payments.
3. Order management : The platform allows wholesalers to manage order from
different manufacturers and retailers in one place , making it easier to track and
manage
4. Logistics and shipping : The platform may also offer logistics and shipping
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services , enabling wholesalers to quickly and efficiently more goods from

manufacturer to ratailers.
5. Increase sales: By providing a digital platform for wholesale transactions, the
platform can attract a wider range of buyers and sellers, leading to increased
sales and revenue.
6. Build customer relationships: The platform can help wholesalers and
manufacturers build strong relationships with their customers, through
personalized experiences and targeted marketing.
7. Reduce costs: By offering a centralized platform for wholesale transactions, the
platform can help reduce costs associated with physical distribution channels,
including transportation and storage.
8. Increase efficiency: The platform can streamline the wholesale buying process,
reducing the time and effort required to place and manage orders.
9. Improve transparency: The platform can increase transparency in the
wholesale market, allowing buyers and sellers to access real-time pricing and
inventory data.
10. Expand reach: The platform can expand the reach of wholesalers and
manufacturers beyond their traditional geographic markets, increasing their
customer base and potential sales.
11. Foster innovation: The platform can foster innovation in the wholesale
industry, by enabling new business models and technologies to emerge and
thrive.
Overall the objectives of a wholesale web-based platform are to create a more efficient
,transparent and innovative market place that benefits all stakeholder in the wholesale
industry.

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Wayfair business model

The Wayfair business model is a multisided platform that works as a furniture and
home-goods online drop-shipping marketplace. Formerly known as CSN Stores, the
company was founded in 2002 and offers over 18 million items from more than 11,000
global suppliers nowadays. The American e-commerce company is focused on
furniture and decorative items, which “is becoming the Amazon of the home goods
market”. In the first quarter of 2020, Wayfair sales grew by almost 20%, compared to
the previous year. In spite of that, the company is still thriving to prove its profitability.
While Wayfair generated more than $9 billion in annual sales in 2019, it also lost
almost $1 billion the same year, besides spending another $1 billion on advertising.

List of board of Directors

Niraj Shah Co-Founder, Chief Executive Officer, Director (Co-Chairman)

Steven Conine Co-Founder, Director (Co-Chairman)

Michael Choe Director

Jeremy King Director

Andrea Jung Director

Michael Kumin Director

Anke Schäferkordt Director

Jeffrey Naylor Director

Michael E. Sneed Director

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Purpose of Wholesale Platform Web-based

A wholesale platform web-based serves as an online marketplace that connects

suppliers and manufacturers with retailers and other businesses looking to purchase
products in bulk. The purpose of such a platform is to streamline the process of
wholesale buying and selling, making it more efficient and cost-effective for all parties
involved.
Wholesale platforms typically offer a wide range of products in various categories,
such as electronics, fashion, beauty, and home goods. They may also provide tools and
features that allow users to search for products, compare prices and features, place
orders, track shipments, and manage their inventory. For suppliers and manufacturers,
a wholesale platform can provide a broader reach and access to a larger customer base,
allowing them to expand their business and increase sales. For retailers and other
businesses, the platform provides a convenient and reliable way to source products at
competitive prices, while also simplifying the procurement process.
A wholesale platform web-based is an online marketplace that connects suppliers and
manufacturers with retailers and other businesses looking to purchase products in bulk.
Its purpose is to streamline the process of wholesale buying and selling, making it
more efficient and cost-effective for all parties involved.
Wholesale platforms offer a wide range of products in various categories, such as
electronics, fashion, beauty, and home goods. They provide tools and features that
allow users to search for products, compare prices and features, place orders, track
shipments, and manage their inventory.
For suppliers and manufacturers, a wholesale platform can provide a broader reach and
access to a larger customer base, allowing them to expand their business and increase
sales. This increased visibility can help them to build brand awareness and attract new
customers, ultimately leading to increased sales.
For retailers and other businesses, the platform provides a convenient and reliable way
to source products at competitive prices, while also simplifying the procurement
process. Wholesale platforms can help to reduce costs associated with traditional
wholesale transactions, such as travel expenses, marketing, and other overhead costs.
This can help businesses to save money and reinvest it in other areas of their
operations.
Wholesale platforms offer a streamlined process for ordering products, from product
search and selection to payment and shipping. This can help businesses to process
orders more efficiently, reducing the time and effort required for each transaction.
Additionally, wholesale platforms can provide users with valuable data and insights
about their customers, products, and sales. This data can be used to optimize pricing,
improve product selection, and identify new business opportunities.

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Wayfair Headquarters Boston , Massachese

Wayfair has two distinct client groups:

1. Purchasers seeking household items

2. providers of household goods

 Value Propositions of Wayfair

With its business model, Wayfair primarily offers the following value propositions:

1. Provide a large variety of products in a range of designs and price points:

Wayfair is known for its vast selection of products across various categories,
including furniture, home decor, lighting, kitchenware, and more. The company
offers over 14 million items from over 11,000 suppliers, providing customers
with a broad range of choices to fit their style preferences, budget, and needs.
Wayfair's product range includes everything from affordable and functional
items to high-end, luxury products, making it a one-stop-shop for all kinds of
customers.

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2. Enabling you to locate the ideal thing at the ideal cost:

Wayfair has an easy-to-use website and mobile app that allows customers to
search for products based on their preferences, budget, and other criteria. The
platform offers numerous filtering options to help customers refine their search
and locate the ideal item at the ideal cost. Wayfair's pricing strategy is also
customer-friendly, with frequent sales, promotions, and discounts, making it
easier for customers to find products at reasonable prices.

3. Enabling suppliers to provide their entire product range to a variety of

customers:

Wayfair provides a platform for suppliers to showcase and sell their entire
product range to a broad customer base. The company offers various tools and
resources to suppliers to help them manage their business effectively, including
logistics, payment processing, and customer service. This enables suppliers to
focus on their core competencies of designing and manufacturing products,
while Wayfair handles the rest. By partnering with Wayfair, suppliers can reach
millions of customers globally and expand their customer base, leading to
increased sales and revenue

 Channels at Wayfair

The mobile apps and mobile-optimized websites of Wayfair serve as the company’s
main channels. In addition, its well-managed Social Media networks and Gift Cards
are worth mentioning.

 Customer Relationships at Wayfair

Since Wayfair is a solely online store, its customer relationships are actually focused
on delivering a fantastic shopping experience through its websites. It concentrates on
providing a customized experience as a result, using a user-friendly website with an
interface based on browsing and purchasing trends and habits,

In addition, Wayfair offers its customers special discounts, performs flash sales during
certain occasions, offers 24/7 customer care, has a lenient return policy, and offers four
different shipping options. Regarding suppliers, Wayfair enables them to ship straight
to clients, saving them money on shipping as well as on the costs of developing and
promoting their own channels.

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 Wayfair’s Income Streams

The product sales, advertising, and revenue streams of Wayfair (as explored above).
However, we should note that the United States accounts for 86% of revenue, or close
to 30 million orders annually.

 Key Resources at Wayfair

Without a doubt, Wayfair’s tech platform, 11,000 suppliers, and 16,000 workers are its
most important resources. Along with that, there are also:

1. Five of its brands

2. The agreements and contracts it has with its suppliers
3. Its algorithm and tracking system for customer patterns and behavior
4. Payment and logistical procedures that are automated

Five of its brands: Wayfair owns several brands, including AllModern, Birch Lane,
Joss & Main, Perigold, and Wayfair Professional. These brands offer a variety of
products, from furniture and decor to lighting and kitchenware. Each brand has a
unique style and target audience, allowing Wayfair to cater to a diverse customer base.
The brands also help Wayfair differentiate itself from competitors and increase brand
recognition.

Agreements and contracts with suppliers: Wayfair partners with over 11,000
suppliers, allowing the company to offer a wide range of products to customers. The
agreements and contracts with these suppliers are a valuable resource for Wayfair, as
they ensure a consistent supply of products and competitive pricing. Wayfair also has a
Supplier Success team that works closely with suppliers to improve product offerings,
reduce costs, and ensure high-quality products.

Algorithm and tracking system for customer patterns and behavior: Wayfair's
algorithm and tracking system analyze customer data to identify patterns and behavior.
This data is used to personalize the shopping experience for each customer,
recommend products, and improve customer retention. The algorithm also helps
Wayfair identify new market opportunities and make data-driven business
decisions.Payment and logistical procedures that are automated: Wayfair's automated
payment and logistical procedures are a key resource for the company. These
procedures ensure efficient order fulfillment, accurate inventory management, and
timely delivery. Wayfair also offers a variety of shipping and delivery options to
customers, including free shipping on orders over a certain amount and expedited
shipping for an additional fee. These options help attract and retain customers,
improving the overall customer experience.
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 Primary Activities of Wayfair

Wayfair’s core initiatives include expanding its furniture and home products collection
as well as creating and sustaining its multifaceted platform, which connects customers
and suppliers through a pleasurable experience. In order to do that, it must also:

1. Analyze consumer shopping patterns and behavior: Wayfair analyzes

consumer shopping patterns and behavior to understand their preferences,
buying habits, and interests. This helps the company to tailor its product
offerings, marketing strategies, and user experience to better meet the needs of
its customers.

2. Publish products created by professionals: Wayfair collaborates with

professional designers and artists to create unique and exclusive products that
are not available elsewhere. By publishing these products on its platform,
Wayfair can differentiate itself from competitors and provide customers with a
wider selection of high-quality items.

3. Improve and update the algorithms: Wayfair's platform uses complex

algorithms to recommend products to customers based on their browsing and
purchasing history, search queries, and other data points. By continuously
improving and updating these algorithms, Wayfair can ensure that its customers
are presented with relevant and personalized product recommendations.

4. Be careful to deliver agilely: Wayfair must be agile in its delivery process to

ensure that customers receive their orders promptly and efficiently. This
involves working closely with shipping and logistics partners to optimize
delivery times and minimize errors and delays.

5. Keep the catalog up to date and managed: Wayfair must keep its product
catalog up to date and well-managed to ensure that customers can easily find
what they are looking for. This involves regularly adding new products,
removing discontinued items, and maintaining accurate product information and
pricing.

6. Offer client support: Wayfair provides customer support to help users with any
issues or questions they may have regarding products, orders, payments, or other
matters. This can be done through a variety of channels, including email, phone,
chat, or self-help resources.

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7. Deal with supplier agreements: Wayfair must maintain strong relationships

with its suppliers to ensure that it has access to a consistent supply of high-
quality products. This involves negotiating and managing supplier agreements,
monitoring supplier performance, and resolving any issues that arise

 The Cost Structure of Wayfair

The automated and drop-shipping business strategy used by Wayfair strives to
reduce and streamline its cost structure. The company’s largest cost drivers are
labor, promotion, and marketing costs because it sends its products directly from
suppliers to clients and does not maintain an inventory. In addition to
operational, administrative, legal, technological, and other general costs, there
are also the costs of research and development.

 Single Home Decor Business Model

For individuals that run a furniture business or a chain of stores, this business
model has proven to be a fantastic choice. If you create an online furniture
shopping app based on this business model, you will be able to showcase your
furniture online and appeal to a large audience. Online orders and payments can
be made by customers utilizing a secure payment system.

 Business Model for B2B Home Décor

This is the best option if you want to target smaller businesses that also sell
furniture as opposed to focusing on customers. You can create a B2B online
furniture buying application so that small businesses can browse your selection
of home decor items and place bulk orders.

 Marketplace for Home Decor Business Model

In this concept, you only create a marketplace that serves as a link between the
various home decor vendors and the clients. Different providers can list their
products in such a marketplace. The buyer can then investigate comparable
products from several providers to choose which one is best for them.

How Does Wayfair Make Money?

Wayfair generates revenue via the sale of goods, installation services, platform
advertising, interchange fees, and interest charges. At first, the business mostly used a
drop shipping business strategy. Since then, it has shifted to a business strategy where
it buys goods in bulk and then sells them for a profit. In the section below, let’s
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examine each of Wayfair’s sources of income in more detail.

 Product Sales
Simply put the things that Wayfair sells on its online platforms account for the
majority of its revenue. More specifically, the company makes money anytime a
product is sold at a profit by making bulk purchases from thousands of brands.
However, Wayfair continues to collaborate with certain of its partners on a drop
ship basis. The brand or retailer is then in charge of shipping the product to the
consumer after Wayfair routes the customer’s order to them. Interestingly,
Wayfair will pay the entire cost of shipping. Wayfair does not impose any fees
on those orders, either. Comparatively, Amazon charges its dropshipping
partners 10 to 15 percent in fees (plus other associated costs).

 Installation Services
Wayfair, in partnership with Handy, provides furniture assembly services for
folks who lack great manual dexterity (like me).The assembled product
determines how much the service will cost. At the time of checkout, customers
can choose to participate.While Handy would collect the majority of the
assembly fees, it is likely that Wayfair will also get a portion of the charge for
referring more clients. The precise percentage share is not made public.

 Advertising
Like any contemporary online marketplace, Wayfair lets its supply-side
companies (in this case, furniture sellers) purchase sponsored spots on the
website.These sponsored placements give brands more exposure. Wayfair has
more than 33 million customers, therefore advertising on its platform has the
potential to significantly enhance earnings.On the site itself, there are many
different ways to advertise. Products may first be given preferential placement
within search results or category pages.Native advertising (like that found on
Wayfair’s YouTube channel) and brand-specific content can be used as
additional forms of promotion (also referred to as sponsored posts).Following
that, those advertisers pay Wayfair. Most likely, a predetermined cost is paid for
sponsored posts. The sponsored products mentioned above most likely charge
marketers based on clicks.

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 Interchange Fees
Two credit cards from Wayfair were introduced in September 2020. One is
provided in partnership with Mastercard, while the other is provided in
partnership with CitiBank.The Mastercard can be used anywhere that accepts
Mastercard payments, but the Wayfair Credit Card can only be used on the
company’s own websites.Credit cards have a number of advantages, such as no
annual fees, discounts on the initial purchase, and 5% Wayfair cashback
rewards.When you use your credit card to make a purchase, an interchange fee is
charged. The merchant is responsible for paying exchange fees, which are
typically under 1%. In this instance, Mastercard would be the one to charge the
fee (since the Wayfair-branded card can not be used outside of its store).After
that, Wayfair would get a percentage of the payment in return for promoting the
card among its users. The precise percentage share is not made available to the
public.

 Interest
Along with the interchange, Wayfair also assesses interest (commonly known as
the Annual Percentage Rate, or APR), when cardholders use their available
credit to make purchases.

When the order is fully paid for, interest is not applied. The following payback
periods are used by Wayfair:

i) Finance for six months on purchases over $199

ii) Financing for 12 months on purchases over $499
iii) Finance for 18 months on purchases over $1499
iv) Finance for 24 months on purchases over $2999

If clients don’t make payments, a 26.99 percent APR is applied to the remaining
balance. The smallest amount of interest is $2.

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Methodology:
Research methodology is a way of explaining how a researcher intends to carry out
their research. It's a logical, systematic plan to resolve a research problem. A
methodology details a researcher's approach to the research to ensure reliable, valid
results that address their aims and objectives. It encompasses what data they're going
to collect and where from, as well as how it's being collected and analyzed.

I have used Secondry data collection method in this

Secondry Data :

Secondary data means data collected by someone else earlierUsing existing data
generated by large government Institutions, healthcare facilities etc. as part of
organizational record keeping. The data is then extracted from more varied datafiles.

References
https://www.easyship.com/blog/ecommerce-sites-for-wholesalers

https://oyelabs.com/wayfair-business-model

https://businessmodelanalyst.com/wayfair-business-model
file:///C:/Users/1/Desktop/Black%20Book/International%20Warehousi
ng%20and%20Supply%20Chain%20Management/Referances/Web-
based%20Wholesale/Pics/wayfair-tech.webp

http://fernfortuniversity.com/term-papers/swot/1433/906-wayfair.php

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SWOT Analysis of Wayfair

The Wayfair is one of the leading firms in its industry. Wayfair maintains its
prominent position in market by critically analyzing and reviewing the SWOT
analysis. SWOT analysis a highly interactive process and requires effective
coordination among various departments within the firm such as – marketing, finance,
operations, management information systems and strategic planning.

Wayfair’s Strengths
As one of the leading firms in its industry, Wayfair has numerous strengths that enable
it to thrive in the market place. These strengths not only help it to protect the market
share in existing markets but also help in penetrating new markets.
 Sustainability: Despite being mostly a furniture store, Wayfair has acquired
several green certifications, such as Energy Star Certified, Recycled, Reclaimed
Wood, Water Efficient, Greenguard Certified, Environmentally Preferred, and
more;
 Wayfair Membership: Wayfair offers the MyWay membership, in which
members pay an annual fee of $29.99 to receive plenty of benefits, including
discounts on the installation of purchased products, free shipping, next-day
delivery, and more.
 Automation of activities brought consistency of quality to Wayfair products and
has enabled the company to scale up and scale down based on the demand
conditions in the market.
 Good Returns on Capital Expenditure – Wayfair is relatively successful at
execution of new projects and generated good returns on capital expenditure by
building new revenue streams.
 Highly successful at Go To Market strategies for its products.
 High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of
customer satisfaction among present customers and good brand equity among
the potential customers.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus
enabling the company to overcome any supply chain bottlenecks.
 Highly skilled workforce through successful training and learning programs.
Wayfair is investing huge resources in training and development of its
employees resulting in a workforce that is not only highly skilled but also
motivated to achieve more.
 Successful track record of integrating complimentary firms through mergers &
acquisition. It has successfully integrated number of technology companies in
the past few years to streamline its operations and to build a reliable supply.

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 Strong dealer community – It has built a culture among distributor & dealers
where the dealers not only promote company’s products but also invest in
training the sales team to explain to the customer how he/she can extract the
maximum benefits out of the products.

Wayfair’s Weaknesses
Weaknesses are the areas where Wayfair can improve upon. Strategy is about making
choices and weakness are the areas where a company can improve using SWOT
analysis and build on its competitive advantage and strategic positioning.

 Organization structure is only compatible with present business model thus

limiting expansion in adjacent product segments.
 The marketing of the products left a lot to be desired. Even though the product
is a success in terms of sale but its positioning and unique selling proposition
is not clearly defined which can lead to the attacks in this segment from the
competitors.
 Financial planning is not done properly and efficiently. The current asset ratio
and liquid asset ratios suggest that the company can use the cash more
efficiently than what it is doing at present.
 The company has not being able to tackle the challenges present by the new
entrants in the segment and has lost small market share in the niche categories.
Wayfair has to build internal feedback mechanism directly from sales team on
ground to counter these challenges.
 Not highly successful at integrating firms with different work culture. As
mentioned earlier even though Wayfair is successful at integrating small
companies it has its share of failure to merge firms that have different work
culture.
 Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reason why the days
inventory is high compare to its competitors is that Wayfair is not very good at
demand forecasting thus end up keeping higher inventory both in-house and in
channel.
 Days inventory is high compare to the competitors – making the company
raise more capital to invest in the channel. This can impact the long term
growth of Wayfair.
 Online issues: Wayfair’s website and its mobile application for Android and
iOS have constantly been into error issues, causing clients and customers, in
general, to complain on Twitter and other social media about the company’s
digital platforms, which inevitably affects Wayfair’s eCommerce sales.

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Wayfair’s Opportunities
 Eco-friendly home decor ideas: Wayfair can promote its sustainability
initiatives by offering eco-friendly home decor ideas to its clients through its
social media.
 Decreasing cost of transportation because of lower shipping prices can also
bring down the cost of Wayfair’s products thus providing an opportunity to the
company - either to boost its profitability or pass on the benefits to the
customers to gain market share.
 Stable free cash flow provides opportunities to invest in adjacent product
segments. With more cash in bank the company can invest in new technologies
as well as in new products segments. This should open a window of
opportunity for Wayfair in other product categories.
 Organization’s core competencies can be a success in similar other products
field. A comparative example could be - GE healthcare research helped it in
developing better Oil drilling machines.
 Economic uptick and increase in customer spending, after years of recession
and slow growth rate in the industry, is an opportunity for Wayfair to capture
new customers and increase its market share.
 New customers from online channel – Over the past few years the company
has invested vast sum of money into the online platform. This investment has
opened new sales channel for Wayfair. In the next few years the company can
leverage this opportunity by knowing its customer better and serving their
needs using big data analytics.
 Lower inflation rate – The low inflation rate bring more stability in the market,
enable credit at lower interest rate to the customers of Wayfair.
 The new technology provides an opportunity to Wayfair to practices
differentiated pricing strategy in the new market. It will enable the firm to
maintain its loyal customers with great service and lure new customers through
other value oriented propositions.
 Government green drive also opens an opportunity for procurement of Wayfair
products by the state as well as federal government contractors.

Wayfair’s Threats
 Fake news: In July 2020, there was a rumor running around the internet accusing
Wayfair of child sex trafficking. Even though it was a false QAnon-affiliated
conspiracy theory, it required crisis management for people that believe
whatever they read without fact-checking it;
 Market balance: Although the company hired around 1,500 people in October
2019, 550 employees were cut shortly afterward in February 2020, which shows
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that Wayfair has been hit by market volatility in recent years.

 The demand of the highly profitable products is seasonal in nature and any
unlikely event during the peak season may impact the profitability of the
company in short to medium term.
 Changing consumer buying behavior from online channel could be a threat to
the existing physical infrastructure driven supply chain model.
 As the company is operating in numerous countries it is exposed to currency
fluctuations especially given the volatile political climate in number of markets
across the world.
 The company can face lawsuits in various markets given - different laws and
continuous fluctuations regarding product standards in those markets.
 Increasing trend toward isolationism in the American economy can lead to
similar reaction from other government thus negatively impacting the
international sales.
 Rising pay level especially movements such as $15 an hour and increasing
prices in the China can lead to serious pressure on profitability of Wayfair
 New technologies developed by the competitor or market disruptor could be a
serious threat to the industry in medium to long term future.
 Intense competition – Stable profitability has increased the number of players in
the industry over last two years which has put downward pressure on not only
profitability but also on overall sales.

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Findings and Conclusion:

Customers at a place like Wayfair can quickly view the exact room at the location
through the camera, select a product, and then set it in the room to see how it fits or
appears there. Users may quickly switch between products and move them around to
test out different angles and layouts. In other words, the app is a classic illustration of
how technology should be used to elevate the consumer experience.Wholesalers who
use ecommerce to sell to B2B buyers can transform their business, allowing them to
streamline their finances, expand their online presence and increase their hold on the
market.

As more and more wholesale businesses take their operations online, you will need to
create more personalized experiences to stand out from the competition — which you
can easily do when you have the right ecommerce platform powering your website.

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Overview of Fishbowl software along with

Galco Industrial Electronics

Fishbowl was formed in 2001 by Chuck and Beverly Hale, two business owners in Salt
Lake City. The pair invested $3 million into the software company and went through
several CEOs in rapid succession.

In 2015, Fishbowl was named to a list of companies for employee financial security.
Fishbowl has also earned a number of business awards for its revenue growth from
organizations such as Inc. 5000, Deloitte, MountainWest Capital, and Global Red
Herring.

In December 2021, Fishbowl was acquired by Diversis Capital Management, LP, a Los
Angeles-based private equity firm focused on investing in software and technology-
enabled services organizations.

Fishbowl is the first manufacturing and warehouse inventory management software!

Its powerful inventory control system gives your small or midsize business the exact
tools needed to transform your inventory management and scale your business.
Fishbowl reduces the number of steps in your manufacturing process and seamlessly
integrates with some of the most popular business solutions such as QuickBooks,
Amazon, Adobe, Shopify, Salesforce and more. Customers appreciate Fishbowl’s
inventory control, material requirements planning (MRP), job shop floor control, work
order management, barcoding, raw materials management, manufacturer orders and
bills of materials (BOM) and ability to predict inventory requirements based on sales
trends. Simplify your business’ processes, improve efficiency, and save money with
real-time inventory updates with Fishbowl’s manufacturing and inventory software.

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Fishbowl software is an inventory management software that helps businesses track

their inventory levels, sales orders, purchase orders, and manufacturing processes. It
provides a range of features such as barcode scanning, inventory tracking, order
management, and reporting.

With Fishbowl software, businesses can track their inventory across multiple locations
and manage their stock levels in real-time. It also helps businesses optimize their
inventory levels by providing insights into their sales trends and forecasting future
demand.

Fishbowl software integrates with a variety of e-commerce platforms, accounting

software, and shipping carriers, allowing businesses to streamline their operations and
improve their overall efficiency. Features: Fishbowl offers a range of features that help
businesses manage their inventory, sales, purchasing, manufacturing, and shipping.
Some of the notable features include inventory tracking, barcode scanning, order
management, bill of materials, work orders, pick, pack, and ship, shipping integration,
and reporting.

Integrations: Fishbowl integrates with popular accounting software like QuickBooks,

Xero, and Sage. It also integrates with e-commerce platforms like Shopify, Amazon,
eBay, and Magento. Fishbowl integrates with major shipping carriers such as UPS,
FedEx, and USPS, and offers custom integration options through its API.

Deployment: Fishbowl software can be deployed on-premises or in the cloud. The on-
premises deployment option requires businesses to install the software on their local
server, whereas the cloud-based deployment option is hosted on Fishbowl's servers.
Both options come with their own set of advantages and disadvantages, and businesses
should choose the one that best suits their needs. Pricing: Fishbowl's pricing is based
on the number of user licenses, the deployment option, and the add-on modules
required. The starting price for a single user on-premises license is $4,395, whereas the
cloud-based subscription starts at $149 per user per month. Add-on modules, such as
advanced manufacturing and asset tracking, come at an additional cost.

Support: Fishbowl provides customer support through various channels, including

phone, email, and chat. It also offers training resources such as video tutorials,
webinars, and documentation to help businesses learn how to use the software
effectively. Overall, Fishbowl is a robust inventory management solution that provides
businesses with the tools they need to manage their inventory and streamline their
operations. Its integration capabilities, deployment options, and pricing make it a
viable option for businesses of all sizes.

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Objective of Fishbowl Software

The main objectives of Fishbowl software:

Streamline inventory management processes: One of the primary objectives of

Fishbowl software is to streamline inventory management processes for small to
medium-sized businesses. This means simplifying tasks such as order fulfillment,
tracking inventory levels, and managing purchase orders to save businesses time and
increase efficiency.

Increase efficiency in inventory management: Fishbowl software aims to help

businesses increase their efficiency in inventory management. This means reducing
manual processes and automating tasks wherever possible to minimize errors, save
time, and improve accuracy.

Track stock levels accurately and in real-time: Fishbowl software provides

businesses with real-time visibility into their inventory levels, allowing them to track
stock levels accurately and make informed decisions about reordering products.

Manage orders and sales more effectively: Fishbowl software helps businesses
manage their orders and sales more effectively by providing tools to streamline the
order fulfillment process, manage customer relationships, and track sales data.

Create and manage purchase orders easily: Fishbowl software simplifies the
process of creating and managing purchase orders, making it easier for businesses to
order the products they need to keep their inventory levels optimized.

Generate detailed reports on inventory levels, sales, and other metrics: Fishbowl
software provides businesses with detailed reports on their inventory levels, sales, and
other key metrics, allowing them to make data-driven decisions about their inventory
management strategies.

Integrate with popular accounting and e-commerce platforms: Fishbowl software

integrates with popular accounting and e-commerce platforms, such as QuickBooks,
Magento, and Shopify, making it easier for businesses to manage their finances and
online sales channels.

Provide an easy-to-use and intuitive interface: Fishbowl software provides an intuitive

and user-friendly interface, making it easy for businesses to manage their inventory
and sales data without requiring extensive training or technical knowledge.

Improve the bottom line of small to medium-sized businesses: By providing tools to

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streamline inventory management processes, increase efficiency, and reduce costs,

Fishbowl software aims to improve the bottom line of small to medium-sized
businesses.

Save time and reduce costs associated with inventory management: By automating
manual processes, providing real-time visibility into inventory levels, and simplifying
the process of creating and managing purchase orders, Fishbowl software helps
businesses save time and reduce costs associated with inventory management.

The Hershey Company

The Hershey Company, commonly known as Hershey's, is a popular American

chocolate manufacturer headquartered in Hershey, Pennsylvania. It was founded by
Milton S. Hershey in 1894 and has become one of the largest and most well-known
chocolate companies in the world. Here's a brief overview of the Hershey Company's
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Early Years:

Milton S. Hershey was born in 1857 in Derry Township, Pennsylvania. He developed

an interest in candy-making and began his career as a confectioner's apprentice in
Lancaster, Pennsylvania.
In 1873, Milton S. Hershey started his own candy business in Philadelphia, which
eventually failed.
In 1883, he moved to Denver, Colorado, and started a caramel business called the
Lancaster Caramel Company, which became successful.
Founding of the Hershey Chocolate Company:

In 1894, Milton S. Hershey returned to his hometown of Derry Township,

Pennsylvania, and founded the Hershey Chocolate Company with the goal of creating
a superior milk chocolate bar.
He built a chocolate factory in Derry Township, known as the Hershey Chocolate
Factory, which used modern equipment and techniques for chocolate production.
In 1900, the first Hershey's milk chocolate bar, known as the Hershey's Milk Chocolate
with Almonds bar, was introduced.
Expansion and Innovation:
In 1903, Hershey's introduced a new product, Hershey's Kisses, which became an
iconic chocolate treat consisting of small, bite-sized chocolate drops wrapped in foil.
In 1907, Milton S. Hershey established a town called Hershey, Pennsylvania, which
was designed as a model town for his factory workers and their families. It included
schools, parks, and other amenities.
In 1927, the Hershey Company introduced the Krackel bar, a milk chocolate bar with
crisped rice, which became a popular treat.
During World War II, the Hershey Company supplied specially-formulated chocolate
bars called "Field Ration D" to the U.S. military as emergency rations.
Post-War Years and Expansion:
In the post-war years, the Hershey Company continued to expand its product line,
introducing new flavors, sizes, and packaging options for its chocolate bars.
In 1963, the company introduced Hershey's Chocolate Syrup, a popular ingredient for
making chocolate milk and other desserts.
In the 1970s and 1980s, the Hershey Company expanded globally, establishing
production facilities and distribution networks in countries around the world.
In 1988, the Hershey Company went public and was listed on the New York Stock
Exchange.
Over the years, the Hershey Company has acquired several other confectionery brands,
including Reese's, Kit Kat, and Twizzlers, which have become popular additions to its
product portfolio.
Philanthropy and Social Responsibility:
Milton S. Hershey had a strong commitment to philanthropy and social responsibility.
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He established the Milton Hershey School in 1909, a private boarding school for
orphan boys, which is still in operation today and is one of the largest boarding schools
in the world.
The Hershey Company has also been involved in various charitable and community
initiatives, including supporting education, health and wellness programs, and disaster
relief efforts.
The Hershey Company has implemented sustainable and responsible sourcing
practices for its cocoa, supporting farmer livelihoods and environmental conservation
efforts in cocoa-growing regions.
Today, the Hershey Company continues to be a leading chocolate manufacturer,
producing a wide range of chocolate products that are enjoyed by millions of people
around the world.

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Use of Fishbowl along with Hershey

For a company like Hershey, which is a manufacturer and marketer of various

chocolate and candy products, Fishbowl software can be used to track inventory levels
of raw materials like cocoa beans, sugar, and milk, as well as finished products like
Hershey's Kisses, Reese's Peanut Butter Cups, and other products.

Using Fishbowl, Hershey can track inventory levels in real-time, set up automatic
reorder points, and generate reports to analyze inventory trends and identify areas for
improvement. The software can also help Hershey manage multiple warehouses and
distribution centers, ensuring that inventory is in the right place at the right time.

Fishbowl software provides Hershey with a comprehensive set of features and

capabilities that aid in tracking inventory levels, setting automatic reorder points,
generating reports for inventory trend analysis, and managing multiple warehouses and
distribution centers.

 Real-time Inventory Tracking:

Fishbowl software enables Hershey to track their inventory levels in real-time,
giving them accurate and up-to-date information on the quantities of raw
materials and finished products they have on hand. This real-time tracking is
crucial for Hershey's inventory management, as it allows them to have a clear
view of their inventory levels at any given moment. Hershey can monitor
inventory levels in Fishbowl software, set up notifications or alerts for low
inventory levels, and take prompt action to replenish inventory when needed.
Real-time inventory tracking with Fishbowl software helps Hershey avoid
stockouts, minimize production delays, and maintain optimal inventory levels to
meet customer demands effectively.

 Automatic Reorder Point Settings:

Fishbowl software allows Hershey to set up automatic reorder points for their
inventory items. Reorder points are predetermined inventory levels that trigger
an automatic reorder when reached. This feature helps Hershey optimize their
inventory levels and avoid manual monitoring of inventory levels constantly.
Hershey can set reorder points based on historical sales data, demand forecasts,
and other factors to ensure that they have adequate inventory levels to support
production and customer orders. The automatic reorder point settings in
Fishbowl software streamline Hershey's inventory management process, reduce
the risk of stockouts or overstocks, and enable efficient inventory replenishment
practices.

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 Report Generation for Inventory Trend Analysis:

Fishbowl software provides Hershey with robust reporting capabilities that allow
them to generate reports for inventory trend analysis. These reports provide
insights into inventory performance, allowing Hershey to analyze their inventory
levels over time, identify patterns or trends, and make data-driven decisions to
improve their inventory management strategies. For example, Hershey can
generate reports on inventory turnover ratios, stockouts, overstocks, carrying
costs, and other KPIs to evaluate the effectiveness of their inventory policies.
These reports help Hershey identify areas for improvement, make adjustments to
their inventory management practices, and optimize their inventory levels to
reduce costs, minimize stockouts, and improve customer service levels.

 Warehouse Management:
Fishbowl software offers Hershey comprehensive warehouse management
capabilities, which are essential for managing multiple warehouses and
distribution centers. Hershey can track inventory movements between different
locations, manage transfers, and monitor inventory levels at each warehouse or
distribution center in real-time. Fishbowl software provides visibility into
inventory levels, location-specific stockouts or overstocks, and other inventory-
related data, allowing Hershey to make informed decisions about inventory
allocation and replenishment. This helps Hershey ensure that inventory is in the
right place at the right time, optimize their supply chain operations, and improve
overall inventory visibility and control across their warehouse network.

 Inventory Optimization Benefits:

The use of Fishbowl software for inventory management has several benefits for
Hershey:
Improved Inventory Visibility: Fishbowl software provides Hershey with real-
time inventory tracking, allowing them to have accurate and up-to-date
information on their inventory levels. This improves their visibility into
inventory levels, demand patterns, and inventory movements, enabling

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Methodology:
Research methodology is a way of explaining how a researcher intends to carry out
their research. It's a logical, systematic plan to resolve a research problem. A
methodology details a researcher's approach to the research to ensure reliable, valid
results that address their aims and objectives. It encompasses what data they're going
to collect and where from, as well as how it's being collected and analyzed.

I have used Secondry data collection method in this

Secondry Data :

Secondary data means data collected by someone else earlierUsing existing data
generated by large government Institutions, healthcare facilities etc. as part of
organizational record keeping. The data is then extracted from more varied datafiles.

References
https://www.yumpu.com/en/document/read/31395887/download-the-
pdf-version-of-this-article-fishbowl-invento

https://en.wikipedia.org/wiki/Fishbowl_Inventory

https://www.thehersheycompany.com

https://www.fishbowlapp.com

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SWOT Analysis

SWOT analysis of Fishbowl software at Hershey, highlighting the software's strengths,

weaknesses, opportunities, and threats:

Strengths:

1. Real-time tracking: Fishbowl software provides Hershey with real-time tracking

of inventory levels, allowing for accurate and timely inventory management
decisions.
2. Automatic reorder points: The software allows Hershey to set up automatic
reorder points, ensuring that inventory is replenished in a timely manner without
running out of stock or overstocking.
3. Comprehensive reporting: Fishbowl software offers robust reporting
capabilities, enabling Hershey to generate detailed reports for inventory trend
analysis, performance measurement, and strategic decision-making.
4. Warehouse management: The software provides Hershey with features for
efficient warehouse management, such as location tracking, picking and
packing, and order fulfillment, optimizing warehouse operations.
5. Integration with other systems: Fishbowl software can integrate with other
business systems, such as ERP and accounting software, facilitating seamless
data exchange and improving overall operational efficiency.

Weaknesses:

1. Dependency on technology: Fishbowl software is reliant on technology

infrastructure, including hardware, software, and networks, which may pose
risks of downtime or technical issues that could disrupt inventory management
processes.
2. Learning curve: Adopting a new software like Fishbowl may require training
and familiarization by Hershey's employees, leading to a learning curve and
potential challenges during the implementation phase.

3. Cost: Implementing and maintaining Fishbowl software may involve costs, such
as licensing fees, training expenses, and ongoing support fees, which could
impact Hershey's overall budget and ROI.
4. Customization limitations: Fishbowl software may have limitations in terms of
customization options to suit Hershey's specific requirements, which may
require workarounds or compromises in certain areas.
5. Security concerns: As with any software that handles sensitive data, Fishbowl
software may pose security risks, such as data breaches or cyber attacks, which
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could impact Hershey's inventory data confidentiality and integrity.

Opportunities:

1. Enhanced inventory control: Fishbowl software presents an opportunity for

Hershey to further enhance inventory control and visibility, leading to optimized
inventory levels, reduced costs, and improved customer service levels.
2. Process automation: Fishbowl software provides Hershey with opportunities to
automate inventory management processes, saving time and reducing human
errors, leading to increased operational efficiency.
3. Data-driven decision making: Fishbowl software's reporting capabilities offer
opportunities for Hershey to leverage data for analysis and make data-driven
decisions to improve inventory management strategies and identify areas for
improvement.

Threats:

1. Competition: Other inventory management software options are available in the

market, posing a threat to Fishbowl's market share and Hershey's dependency on
the software.
2. Technological changes: Rapid changes in technology could potentially render
Fishbowl software obsolete or require significant updates or upgrades to remain
effective, posing a threat to its long-term sustainability.
3. Security risks: As with any software that handles sensitive data, Fishbowl
software may pose security risks, including data breaches or cyber attacks,
which could impact Hershey's inventory management processes and
compromise sensitive information.

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Findings and conclusion :

Fishbowl software plays a crucial role in helping Hershey effectively manage their
inventory levels of raw materials and finished products. With real-time inventory
tracking, automatic reorder point settings, report generation for inventory trend
analysis, and warehouse management capabilities, Hershey can optimize their
inventory levels, avoid stock outs, minimize overstocks, and make data-driven
decisions to continuously improve their inventory management practices. Overall,
Fishbowl software enhances Hershey's ability to ensure efficient and effective
inventory management, which is critical for their operations as a leading manufacturer
and marketer of chocolate and candy products.

BYKCC/Gautam Chhajed / SY BBA (IB)/2022-23