Department Store and Supply Chain Article

CHAPTER TWO

Discussion Questions

1 . Just how would you characterize the competitive strategy of any high-end department store chain such as Nordstrom? Exactly what are the key buyer needs that Nordstrom aims to fill?

The Nordstrom web site states the following. Over the years, the Nordstrom family of personnel built a thriving organization on the guidelines of quality, value, collection, and assistance. Today, Nordstrom is one of the nation's leading fashion retailers, supplying a wide variety of superior quality apparel, shoes, and add-ons for men, girls, and children at shops across the country. We remain dedicated to the simple thought our company opened on, earning our customers' trust one-by-one. Nordstrom fills customer demands for superior quality fashion products and outstanding levels of customer care. Price is no object to get the typical Nordstrom shopper.

installment payments on your Where would you place the demand faced by Nordstrom on the intended demand uncertainty spectrum? So why?

Implied demand doubt is demand uncertainty as a result of portion of demand that the source chain is definitely targeting, not really the entire demand. A high-end department store string such as Nordstrom falls for the high end from the implied demand uncertainty scale. The fashion items which Nordstrom stocks and shares have extremely high product margin, substantial forecast errors and stockout rates, as soon as the season is over, these items can be purchased at deep discounts at their Nordstrom Rack outlet stores.

3. What level of responsiveness would be most appropriate for Nordstrom's supply sequence? What if the supply cycle be able to carry out particularly well?

Source chain responsiveness takes a large number of forms, including the ability to respond to a wide range of volumes, meet short lead occasions, handle a large variety of items, build ground breaking products, satisfy a high service level, and handle supply uncertainty. The Nordstrom supply chain has to be highly reactive in the regions of handling highly innovative vogue products, consumer response, and service level; they are powerful in providing well-heeled buyers with products and their return policy is usually legendary inside the Pacific Northwest.

four. How can Nordstrom expand the scope from the strategic suit across the source chain?

Scope of strategic match refers to the functions in the firm and stages through the supply sequence that devise an integrated technique with a distributed objective. By adopting an intercompany interfunctional scope approach, Nordstrom will maximize source chain excess. Nordstrom can move in this direction by working together with their suppliers as if they can be actually owned or operated by Nordstrom. Rather than observing the supply chain as a zero-sum game of inventory expense minimization and profit optimization, Nordstrom must recognize that dispersing the prosperity and occasionally signing up for more inventory than is optimal on their behalf will result in better customer service. The intercompany interfunctional scope of strategic suit requires more effort compared to the other methods presented through this section; Nordstrom must examine all aspects of their supply web.

five. Reconsider the previous four questions for others such as Amazon online marketplace. com, a supermarket sequence, and automobile manufacturer, and a discount merchant such as Wal-Mart.

Amazon online marketplace. com is targeted on cost and adaptability by providing ebooks, music and a host of additional household items at affordable prices. Customers place orders on the web and expect to receive acquisitions in a number of times. Customer purchases are highly processed at central warehouses or are drop delivered from suppliers by mail or prevalent carrier. Typically, the implied demand uncertainty for Amazon online. com is low as they cast this sort of a wide net. Amazon. com's supply sequence must be reactive in terms of flexibility; they deal with an incredibly various range of products. Amazon online. com's source chain must be able to provide low prices wide variety and reasonable delivery schedules for its customers....



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