Summary: SAB, as a classic, middle-of-the-supply-chain organization main activity has been purchasing products from major manufacturers and selling them to smaller distributors, wholesalers, and retailors. However, the company has been facing several challenges in the past years. The competition between its customers and large retailers such as Walmart, the increase in imported goods for the more diverse population of US has led to a more competitive and complex environment for SAB. In addition to lowering warehousing costs, improving order fulfillment cycles and investment in IT infrastructure as SAB new strategic direction, Susan Weber plans on expanding its operations to retailors in mid-Atlantic states by altering its business model and
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Why and how has the competitive market place for SAB changed in the last five to seven years?
The dynamics of the global environment has changed dramatically during the past 30 years, and organizations had to adapt to these changes in order to not perish. There appear to be five major external forces that caused the market place for SAB or any other company in that regard to change:
1. Globalization: The dominant driving force in world economics has led to the blurring of traditional organizational boundaries, which has caused an increase in demand for imported goods and lower-priced alternatives.
2. Technology: Globalization and technology has allowed individuals and smaller organizations to connect to the world’s “knowledge pools” to create an unbelievable set of opportunities for collaboration in supply chain. This has led to a more competitive market place and SAB need to exploit the opportunities presented by technology both on the procurement side of business and in marketing …show more content…
Due to the changes in market landscape, both Companies are under pressure to reduce their costs in order remain competitive. Under the leadership of Susan Weber, one of the SAB solutions for its challenges has been investment their IT infrastructure to reduce costs. As a result of sharing this IT infrastructure in their partnership, Central can also see its cost to reduce. Moreover, working with SAB can help Central to transport a higher quantity of goods with their current transportation system and broader access to more area and new customers. Finally, partnership such as this can lead to shorter cycles (order-fulfillment and cash) which has been a challenge for companies since the inception of
Why and how has the competitive market place for SAB changed in the last five to seven years?
The dynamics of the global environment has changed dramatically during the past 30 years, and organizations had to adapt to these changes in order to not perish. There appear to be five major external forces that caused the market place for SAB or any other company in that regard to change:
1. Globalization: The dominant driving force in world economics has led to the blurring of traditional organizational boundaries, which has caused an increase in demand for imported goods and lower-priced alternatives.
2. Technology: Globalization and technology has allowed individuals and smaller organizations to connect to the world’s “knowledge pools” to create an unbelievable set of opportunities for collaboration in supply chain. This has led to a more competitive market place and SAB need to exploit the opportunities presented by technology both on the procurement side of business and in marketing …show more content…
Due to the changes in market landscape, both Companies are under pressure to reduce their costs in order remain competitive. Under the leadership of Susan Weber, one of the SAB solutions for its challenges has been investment their IT infrastructure to reduce costs. As a result of sharing this IT infrastructure in their partnership, Central can also see its cost to reduce. Moreover, working with SAB can help Central to transport a higher quantity of goods with their current transportation system and broader access to more area and new customers. Finally, partnership such as this can lead to shorter cycles (order-fulfillment and cash) which has been a challenge for companies since the inception of