Product Development

 Product development:
 Design products that are easily modified for key markets.

 Products can easily be produced in a variety of locations.
 Designing a base product or products that can be more easily adapted to a
variety of markets.
 A global design workforce could be useful.
Example: McDonald's is a fast food company pursuing a product development strategy.
The company tested and developed gourmet sandwiches (Gourmet-like sandwiches)

because it believes that consumers tend to pay more for fast foods with more nutritious
ingredients.
 Purchasing
 Important resources should be purchased by management teams from a variety of

international vendors
 Suppliers’ quality and delivery choices must be compatible.
 The prices of different suppliers should be compared by a qualified team
 In order to guarantee flexibility, adequate suppliers are needed in various regions.
 Production
 It's crucial to have surplus capacity space and plants in several regions.
 There must be efficient communications systems in existence.
 The importance of centralized management
 Establishing inter-factory communication is essential
 Each factory should be aware of the system status by centralized management.
 Demand management
 establishing marketing and sales strategies based on anticipated demand and

available product
 must include at least some centralized component
 Analysts in each region are the best source for sensitive, market-based
information
 Communication is crucial.
Ex: with Retail
Help retailers who need to keep up with customer demand for seasonal products, new
releases, and trends. Retailers use demand management to forecast demand, plan
inventory levels, and optimize pricing strategies.
With Manufacturing
Ensure they have enough raw materials and production capacity to meet customer
demand while minimizing waste and excess inventory.
https://www.pickrr.com/blogs/what-is-demand-management-functions-process-and-
examples/#:~:text=Demand%20management%20involves%20data
%20collection,customer%20satisfaction%2C%20and%20stay%20competitive.
 Order fulfillment
 Centralized system
 Regional customers must be able to receive deliveries from the global supply
chain with the same efficiency as they do from local or regionally based supply
chains
Video về fulfillment amazon:
https://www.youtube.com/watch?v=TlXA6bA63zM
What makes Walmart’s supply chain so successful?
 Order fulfillment.
Among the many supply chain optimization strategies, the company places great emphasis on
omnichannel — multiple channels available to its customers. Walmart’s Marketplace creates a home for
thousands of retail stores with the ultimate goal to save time for the consumer. Walmart also provides
multiple marketplace fulfillment options, such as in-store pickup, ship from store, and even digital
pharmacy fulfillment. Globally, Walmart offers 7,000+ pickup locations and 5,000+ delivery locations.
 Purchasing.
Walmart’s strong relationships with vendors have played a major role in their supply chain success. They
go straight to the source and identify vendors who can provide them with the best price and can meet
their high-volume demands.
Walmart establishes strategic partnerships with these vendors, guaranteeing them consistent business
through long-term, high-volume purchases. In return, the company can enjoy wholesale prices, which
keeps customer prices competitive throughout the years.
To further strengthen these relationships, Walmart also establishes open communication networks with
their vendors. This allows them to improve the flow of inventory within the supply chain and anticipate
possible disruptions before they escalate into larger problems, such as backorders, stockouts, and
delivery delays.
 Production.
Walmart has further strengthened and simplified their supply chain by implementing a vendor
management inventory (VMI) model.
VMI involves suppliers managing their own inventory that’s stored in Walmart’s warehouses. With this
approach, the company puts the responsibility of managing inventory in the hands of suppliers, so they
can save time and money on inventory management..
With an electronically backed VMI system, suppliers have access to Walmart’s inventory data, allowing
them to keep track of real-time inventory levels and sales. This makes it easy monitor how much stock is
available and how certain products are sold.
Based on this information, they can see when they need to send more inventory to Walmart and keep
their stock replenished.
This simplified inventory management model results in fewer delays in replenishment and reduces
stockouts. It’s particularly useful since Walmart deals with hundreds of thousands of SKUs from
thousands of suppliers, which can get complicated and expensive to manage.
 Demand management
“Everyday low prices”
“Everyday low prices” are a way of doing two things. The first thing is to tell its price conscious
customers they will always get the best price; they need not look elsewhere or wait for special sales. The
effect of this message to customers helps Walmart do the second thing. And the second thing is to
accurately forecast product sales. Sales and other events designed to sway customer purchasing tend to
make demand forecasting much more difficult and this affects supply chain planning. By eliminating
special sales and assuring customers of low prices, it smooths out demand swings making demand more
steady and predictable. So stores are more likely to have what customers want when they want it.
Links: Key Supply Chain Practices from Walmart | SCM Globe

Product Development

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 Product development:

 Design products that are easily modified for key markets.

Example: McDonald's is a fast food company pursuing a product development strategy.

The company tested and developed gourmet sandwiches (Gourmet-like sandwiches)

 Important resources should be purchased by management teams from a variety of

 establishing marketing and sales strategies based on anticipated demand and

Ex: with Retail

Video về fulfillment amazon:

“Everyday low prices”

Links: Key Supply Chain Practices from Walmart | SCM Globe

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