1. Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and the different flows involved.

2. What are some problems that can arise when each stage of a supply chain focuses solely on its own profits when making decisions? Identify some actions that can help a retailer and a manufacturer work together to expand the scope of strategic fit.

Explanation:

The Purchase of a Can of Soda in a convenience store would have gone through the following flow in its supply chain:

First the Supply chain describes the chain of activities right from the first gathering of information about the product to its eventual delivery to the Consumer. The flow could be a lengthy one, but it helps to know all thats involved in landing a product to the consumers

A. The conceptualization stage

This is the point where a group of people (idealization or innovation team of a business) gather to develop a product that is believed can meet a certain group of consumers needs (in this case refreshment and Thirst Quenching)

B. The Information stage

This is where detailed brainstorming is carried out on the consumers of this proposed product (the demographics, economic disposition etc) and study of current alternatives (if any), the ingredients that will deliver the specific zing we expect in the product and getting regulatory approvals to Launch the product. Research is conducted to identify how the required ingredients would react in a human body and other concerns are dealt with at this stage.

C. Material Sourcing

This is the point where the required ingredients considered during the information stage are sourced across the world and brought into one or more production process from our Suppliers. Ingredients are moved in by Ship, train, trucks etc

D. Production stage

This is where the ingredients and other Materials are converted into the product that was once a thought in the minds of a few people. This is done in the factory, with People and Machine working together to come out with a preplanned output

E. Logistics/Delivery stage

The Finished Products are shipped across the nation to Customers who have put in orders for the same. Shipment could be by all means of transportation. They are loaded into the Customers Warehouse for onward delivery to the Customers own customers.

F. The Customers having ordered in Bulk now sell in lower quantity (called Bulk breaking) to the Wholesalers and retailers (Convenience store is a retailer)

G. And the Consumer is able to pick it off the shelf or fridge for immediate enjoyment.

2.

A.If the idealization or innovations team considers only it's profit without checking what is in it for the rest of the Business, it could either run the business to a loss or abnormal profit situation which isn't a good place to be

B. If production considers itself alone it may choose to hire high priced workers or otherwise or invest in very expensive machines or complex to maintain machines or faulty ones. The implication of these is the project could run aground when such decisions are made without thinking through the entire chain, as the business will find it impossible to land the product at the right price or will consistently be unable to cover its costs

C. Distributor, Wholesaler and Retailer. If either of this fail to reason with the approved price list but considering self interest alone it will distort the Business objectives and cause a break in the growth agenda of the Product line. it may delay subsequent offerings, cause some consumers to go look for alternatives because of consistent stock out, it may lead to the product being expensive in one part and cheaper in another, it may result in strained business relationships between the organisation and its customers.

3 Some actions that can help Retailers and Manufacturers attain strategic fit

a. Regular stock availability. Retailers may have invested in opening new stores and warehouses because of the success outlook of the new Launch. Having a stock out intermittently from the Manufacturers plant defeats that investment

b. Right Pricing. In considering what the recommended Price is to be to the consumers the Manufacturer needs to consider as well the Margin Per unit to be made by the Retailer, and see if it makes sense for the size of Business they wish to develop

c. Flow of information. The Business must have a direct line of communication with its Retailers to avoid the wrong message being acted upon in error.

d. Standard Operating procedures in handling agitations from the Retailers/Consumers: There has to be an agreed approach in attending to the concerns of the Retailers and also dealing with damaged goods/ bad stock and product recalls

e. Credit advancement discussion needs to have been settled beforehand to help the Businesses in the course of engagement to have a clear understanding how they deal with one another. Cash or Credit.

f. regular feedback collections from retailers will serve as a boost in product innovation and brand communications.

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