Efficiency And Competitiveness Paper

Superior Essays
Cost, Efficiency and Productivity – Neal “Efficiency, productivity and competitiveness are linked. Better productivity means increased efficiency which results in a higher level of competitiveness” (GCSE, 2014). This is currently not the case for the California division of Railex, and will need to be to create a more competitive company. Due to a lack of internal accounting information it will need to be assumed that an investigation is necessary. This is to find the root cause of the costs exceeding the profits. Due to the size of the facility and the regulations inherent of California business it is most likely one of these two reasons. GCSE goes on to explain some cost cutting measures that could be implemented to help make Railex more …show more content…
This puts them ahead of competitors that will only look at orders of a certain quantity. This helps to alleviate the issues inherent of having only a few large companies that they are dealing with, and the dependency on those companies to do well for Railex to do well. However, the added use of technology will help to poise Railex as a truly competitive cold storage railway transporter. While this technology can, and will, take many forms (RFID, scheduling software, etc.) it will help make Railex more efficient and help them provide a better customer experience. It is our belief that these changes could be easily implemented because of the advances already made in terms of tracking technology. This would also help to better illustrate where efficiency is being lost, be it in the inaccuracy of order creation, or the time it takes for a railcar to be loaded. This technology will also help with the scheduling of every operational aspect of the company. The main focus of competitiveness is the reduction in overhead, which will allow Railex to offer a more competitive pricing structure to its customers, or increase their overall profit margin. Supply-chain management will also increase through the use of better processes which will help Railex remain competitive with their just-in-time style of order processing and ability to fine tune cross country shipping and the highest use of their railways and railcars. It is through these tactics that the highest level of efficiency can be reached, and due to its nature the company can be making money twenty-four hours a day seven days a

Related Documents

  • Great Essays

    Revenue. As before mentioned, even your revenue will see an improvement when you utilize inventory forecasting properly. The reason for this is because you will be better prepared to take care of your customers and anticipate their demands. Then, you will be able to better care for their needs and make sure the products they are actually looking to purchase are where they have access to them. You can also eliminate the amount of products that don’t peak their interest, which can help improve the amount of earnings your business receives at the same time.…

    • 1303 Words
    • 6 Pages
    Great Essays
  • Great Essays

    This is because the practice of cultivating loyalty helps to lower customer defection rates. Customers may decide to leave the firm for many reasons, one of which could be due to unsatisfactory level of service provided by the firm to the customer. Through the implementation of RM, firms will be able to understand the needs and wants of customers better, thus, enabling them to provide customised services to suit the customers’ requirements. Berry, Parasuraman and Zeithaml (1996) have highlighted that lowering customer defection rates by building loyalty has indeed been proven to be a more profitable strategy as compared to a cost reduction…

    • 1149 Words
    • 5 Pages
    Great Essays
  • Great Essays

    It results in locking of capital of the company which could have been used for some other profitable projects and hence company should consider opportunity cost of capital before going for vertical merger. Conglomerate Mergers Advantages Disadvantages 1. Helps the company in diversification hence a company is less vulnerable to losses due to decline in sales in one sector or industry 2. It is also helpful when the company has excess cash but does not have enough opportunities for growth investing in the same industry 3. It increases the customer base of the company and hence company can cross- sell its products to the new customer base which in turn leads to increase in the sales of its core products leading to higher profits for the company.…

    • 1213 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    With a reduction of inventory, Acer will be able to recognize higher profit margins as inventory and labor are the highest cost that there are in this company. In scaling back on the inventory stored, Acer will be able to minimize the cost of warehousing, decrease the amount of labor it takes to track and maintain inventory which will lead to an overall increase in market share. Competitive Product Lead Times Acer will recognize a competitive product lead time through consistently fine tuning their demand forecast. They will constantly monitor their supplier’s performance and establish a back-up system should a supplier not be able to meet an order at any given time for any unforeseen reason. Through Acer’s efforts of reducing non-value added activities, simplifying and standardizing parts, optimizing equipment layout, standardizing activities, routine maintenance, and supplier relations management, Acer will obtain and maintain an increased lead time over its competitors who are lacking in these areas.…

    • 859 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The railway trains, engines, employees, managers were engaged in business of provision of services for passengers and freight. By these terms of service provision the railroad significantly contributed to the American economic growth. The amount of freight increased from 13 billions in 1870 to 450 billions in 1929. Additionally, the railroad reduced transportation costs. When the railroads began their operation the advantages over canals and other ways of transportation were obvious – the speed was much higher and the service was more flexible.…

    • 1473 Words
    • 6 Pages
    Great Essays
  • Decent Essays

    As the technology advances, added value to companies make their goods and services cheaper and in result attracting more and ore consumers. Besides such economic gain, there will be some social hurdles. With IoT application in factories, workers would need to expand their learnability and ability to adopt changes. Social challenges like re-training or entirely new job function would prove to be a challenge. Nonetheless, the risk that IoT application will abolish humans from factories is not possible.…

    • 982 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    It may also negatively impact the customer’s perception of our company. Cost Management (.2) By improving and focusing on cost management, we would gain a competitive advantage in our industry. Wavelength (.2) This area is indicative of our relationship status with our suppliers and the better our relationship is with them, the more willing they are to accommodate our needs. Delivery (.15) It is important for our company to have our supplies on time and in the correct quantities because the production of our products depend on the bearings. Technical Support (.15) While bearings are not a type of product that requires much follow-up and assistance from a call center, their responsiveness to the changes in process improvements result in long-term efficiency gains for all parties…

    • 906 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    United airlines are using good technology and segmentation method to meet different needs of different customers but if I use more powerful technology and focus on good market segmentation it will have significant effect. It will help to meet the need of customer more efficiently and effectively against competitors. As it is working internationally so competition level is very high and to get higher position in the market from competitors I also have to focus on lower cost and higher profitability. I have to improve financial growth to secure future loans for air craft and other purchase. United air line strongly depends upon outsiders vendors it cusses reduces in the revenue and increases in the expenses.…

    • 1300 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Market Penetration

    • 1909 Words
    • 8 Pages

    This will indicate that efficiency is needed to maintain a suitable profit. Furthermore, another good advantage of 'Market penetration ' is it may discourage competitors from entering the market because overall it would be very hard to compete with someone like Tesco because its overall market share is very large. In addition, if there is a high product turnover due to fast sales this will create enthusiasm for a specific product for the distributors. Although it may seem there are many good advantages with market share, with advantages must come disadvantages. There are many disadvantages in market penetration such as poor company image, lowering industry prices, and missed opportunities.…

    • 1909 Words
    • 8 Pages
    Improved Essays
  • Superior Essays

    For instance, if we use an effective marketing strategy that will increase product awareness in certain areas it'll result in higher product consumption that will also increase market penetration. Advantages and Disadvantages of Market Penetration Strategy/Pricing Market penetration strategy takes advantage of low prices to increase product demand and increase market share. While the demand is increasing, the organization saves money on product creation costs due to the greater volume of production. Though, market penetration strategy doesn't work for all products and businesses, so some companies use different marketing strategies that seem to be more beneficial. Advantages of Market Penetration Strategy Fast Growth - If your business and marketing objective is to enlarge your consumer base, then market penetration is the most effective way to act.…

    • 1241 Words
    • 5 Pages
    Superior Essays