Reducing Assortments without Losing Business: Key Lessons for Retailers and Manufacturers

2011 ◽  
Vol 3 (2) ◽  
pp. 26-33 ◽  
Author(s):  
Laurens Sloot ◽  
Peter Verhoef
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Switching Behavior ◽  
Negative Effects ◽  
Short Run ◽  
Assortment Reduction ◽  
Multiple Categories

Abstract To gain efficiencies in the supply chain, retailers regularly consider which items of products or brands they can delist. However, increased efficiency is not granted when products are dropped. Choosing the “wrong” products or brands may result in reduced customer satisfaction, lost category sales, or increased store switching behavior. The detergent assortment reduction at a Dutch retailer showed that sales losses can only be observed in the short run and that the reduced assortment is more attractive, especially to new buyers in the category. A survey across multiple categories revealed that negative effects of delisting are less risky for weaker brands and utilitarian products. Retailers are welladvised to be cautious with dropping strong, hedonic brands and use a set of criteria to make the best delisting decisions. Manufacturers should apply approaches depending on the strengths of their brands when confronted with an impending delisting

Carnival Corporation: The Challenges of Cutting Costs While Maintaining Quality and Customer Satisfaction

2018 ◽  
pp. 1-16
Author(s):  
Dick Verbeek
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Customer Satisfaction ◽  
Customer Service ◽  
Chain Management ◽  
Cruise Line ◽  
Management Issues

This case study has been developed to facilitate discussion about current supply chain management issues and potential solutions. The scenario presented in this case is very representative of the pressures experienced by supply chain managers. Namely, the need to reduce costs while maintaining quality and customer service. This case presents some unusual challenges and constraints that are unique to the cruise line industry. These constraints can provide an opportunity to explore new supply chain paradigms.

Supply chain practices and organizational performance

2017 ◽  
Vol 28 (1) ◽  
pp. 75-101 ◽  
Author(s):  
Shrikant Gorane ◽  
Ravi Kant
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Organizational Performance ◽  
Customer Value ◽  
Structural Equation ◽  
Decision Makers ◽  
Current Status ◽  
Content Type ◽  
Manufacturing Organizations

Purpose The purpose of this paper is to empirically test a framework which identifies the relationships between various supply chain practices (SCPs) and organizational performance (operational performance (OP), customer satisfaction, and financial performance) in the context of Indian manufacturing organizations. Design/methodology/approach From the literature, ten SCPs are selected which finally influences the organizational performance. In order to understand the interactions between SCPs and organizational performance, this paper grouped the ten SCPs into four constructs namely: information and communication technology, supply chain (SC) integration, operational responsiveness, and closed loop green practices. Three levels of firm performance are also examined, including OP, customer satisfaction, and financial performance. The paper-based and web-based survey yielded 292 responses from the Indian manufacturing organizations. The data collected were put through rigorous statistical analysis to test for the content, construct, and criterion-related validity, as well as reliability analyses. Further a structural equation model was developed to test the relationships between SCPs and organizational performance. Findings The finding suggests that a successful SCPs implementation not only improves the OP, but also enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction. Research limitations/implications SCPs are complex constructs. While this study shows the effect of broadly accepted SCPs on organizational performance, not all possible practices are covered in this study. Again the study can be further extended to sector specific so that the results can be further refined. Practical implications This is one of the few studies which attempts to investigate whether there is any relationship exits between SCPs and organizational performance. The finding will help decision makers in the organization to know the importance of SCPs and how SCPs influence the organizational performance. Second, this study has developed and validated a multi-dimensional construct of SCPs, which can assist decision makers of Indian organizations to evaluate the competence of their current status of SCPs in the organization. Originality/value As per the knowledge of the authors, this is the first kind of study which empirically investigated the relationships between SCPs and organizational performance in the context of Indian manufacturing organizations.

Testing the Negative Effects of Time Pressure in Retail Supply Chain Relationships

2010 ◽  
Vol 86 (4) ◽  
pp. 386-400 ◽  
Author(s):  
Rodney W. Thomas ◽  
Terry L. Esper ◽  
Theodore P. Stank
Keyword(s):  
Supply Chain ◽  
Time Pressure ◽  
Negative Effects ◽  
Supply Chain Relationships

scholarly journals The influence of dimensions of organisational culture on supply chain performance in selected state-owned enterprises in Zimbabwe

2018 ◽  
Vol 12 ◽  
Author(s):  
Michael Musanzikwa ◽  
Manduth Ramchander
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Strategic Alliances ◽  
Business Processes ◽  
Growth Time ◽  
Environmental Scanning ◽  
Supply Chain Performance ◽  
Goods And Services ◽  
Cultural Variables ◽  
Customer Learning

Background: Despite being strategic, state-owned enterprises (SOEs) have failed to fulfil their mandate. Supply chain performance is ineffective largely because of weak organisational culture.Objectives: To explore the extent to which organisational cultural factors have influenced the supply chain performance of SOEs, review the literature; effectiveness of attaining financial targets, customer satisfaction, internal business processes, learning and growth; time orientation on the supply chain metric of delivery. The supply chain metric of flexibility; profitability on cost reduction; ‘no ownership’ culture on decision-making; and the level of customer satisfaction.Method: A mixed-method was used. The population comprised managers, employees and clients of eight selected SOEs. Judgmental, random and convenience sampling were employed. Questionnaires and interviews were the research instruments and quantitative and qualitative analyses were conducted. Findings are presented thematically, in line with the research questions.Results: SOEs were not meeting financial targets, not satisfying customers, poor internal business processes not attaining learning and growth targets. Organisational cultural variables were weak; affecting flexibility, no timely delivery of goods and services. Also influenced the behaviour of human resources and an indirect effect on customer satisfaction, cost-saving and profitability in the SOEs.Conclusion: The SOEs failed to meet financial, customer, learning and growth targets. The internal business processes were not effective. The culture did not promote efficiency. The study recommends that commitment of leadership on human behaviour is necessary for effective supply chain performance and strategy implementation. Constant environmental scanning, strategic alliances, rationalisation of remuneration and sound corporate governance are essential.

scholarly journals Delayed negative effects of prosocial spending on happiness

2020 ◽  
Vol 117 (12) ◽  
pp. 6463-6468 ◽  
Author(s):  
Armin Falk ◽  
Thomas Graeber
Keyword(s):  
Prosocial Behavior ◽  
Causal Relationship ◽  
Human Life ◽  
Behavioral Experiment ◽  
Negative Effects ◽  
Apparent Absence ◽  
Prosocial Spending ◽  
Short Run ◽  
Positive Effect ◽  
Random Variation

Does prosocial behavior promote happiness? We test this longstanding hypothesis in a behavioral experiment that extends the scope of previous research. In our Saving a Life paradigm, every participant either saved one human life in expectation by triggering a targeted donation of 350 euros or received an amount of 100 euros. Using a choice paradigm between two binary lotteries with different chances of saving a life, we observed subjects’ intentions at the same time as creating random variation in prosocial outcomes. We repeatedly measured happiness at various delays. Our data weakly replicate the positive effect identified in previous research but only for the very short run. One month later, the sign of the effect reversed, and prosocial behavior led to significantly lower happiness than obtaining the money. Notably, even those subjects who chose prosocially were ultimately happier if they ended up getting the money for themselves. Our findings revealed a more nuanced causal relationship than previously suggested, providing an explanation for the apparent absence of universal prosocial behavior.

scholarly journals A model of the supplier involvement in the product innovation

2017 ◽  
Vol 27 (1) ◽  
pp. 61-89 ◽  
Author(s):  
Manoj Kumar ◽  
Jyoti Raman ◽  
Priya Raman
Keyword(s):  
Supply Chain ◽  
Product Innovation ◽  
Innovation Policy ◽  
Research Performance ◽  
Innovation Process ◽  
Effort Level ◽  
Endogenous Time Preference ◽  
Short Run ◽  
Fluctuation Frequency

In this paper we examine the product innovation in a supply chain by a supplier and derive a model for a supplier?s product innovation policy. The product innovation of a supplier can contribute to the long-term competitiveness for the supply chain, and as it is for many supply chains a major factor, it should be considered in the development of strategies for a supplier. Here, we evaluate the effectiveness of supplier product innovation as a strategic tool to enhance the competitiveness and viability of supply chain. This paper explores the dynamic research performance of a supplier with endogenous time preference under a given arrangement of product innovation. We find that the optimal effort level and the achieved product innovation obey a saddle point path, or show tremendous fluctuations even without introducing the stochastic nature of product innovative activity. We also find that the fluctuation frequency is largely dependent both on the supplier?s characteristics such as supplier?s product innovative ability and on the nature of product innovation process per se. Short-run analyses are also made on the effect of supply chain cooperation in the product innovation process.

Exploring the Blockchain Technology Application in the Chinese New Retail Business Model

2019 ◽  
pp. 86-102
Author(s):  
Yuhong Li ◽  
Nachiappan Subramanian
Keyword(s):  
Supply Chain ◽  
Customer Satisfaction ◽  
Business Model ◽  
Satisfaction Level ◽  
Supply Chain Security ◽  
Technology Application ◽  
Blockchain Technology ◽  
Retail Business ◽  
Business Application ◽  
Potential Risks

While the new retail is revolutionizing retailing in China, the supply chain of the new retail has a few problems or potential risks which will decrease the customer satisfaction level. However, the implementation of one of the cutting-edge technologies—the blockchain—can revolutionize the supply chain of the new retail in China. This qualitative piece uses multiple interviews to find out the specific outcomes blockchain will make for the supply chain of the new retail in China. The major contribution is to fill the gap of the academic literature as well as the business application and such as the new retail in China to increase supply chain security and efficiency with blockchain.

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