A distributor has heard that one of the major manufacturers from which it buys is considering going direct to the consumer. What can the distributor do about this? What advantages can it offer the manufacturer that the manufacturer is unlikely to be able to reproduce?
Answer to relevant QuestionsWhat types of distribution networks are typically best suited for commodity items? Consider the sale of home improvement products at Home Depot or a chain of hardware stores such as True Value. Who can extract the greatest benefit from going online? Why? Consider a firm such as Ford, with more than 150 facilities worldwide. List the pros and cons of having many facilities and why it may or may not be suitable for the automobile industry. What are some major nonfinancial uncertainties that a company should consider when making decisions on where to source product? How do static and adaptive forecasting methods differ?
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