BUAD 307 Lecture Notes - Lecture 10: Disintermediation, Product Placement, Direct Marketing
27 Oct 2016
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Getting products to a place where customers want it, and when they want it. Ex: amazon kiva robotic automation cuts operating costs by 1/5th. Anticipatory shipping: delivering products near a customer before they place an order. Using amazon"s purchase history data for machine learning (predictive algorithms) to predict when you will buy an item. Organizations that are part of the process of producing, promoting, and delivering a product. Ex: raw materials supplier manufacturer distributor retailer customer. If the customer is not happy, the chain has failed somewhere. Streamlining the number of transactions an organization must take. Increase value for consumers: making deals with manufacturers to offer competitive prices. Retailers can be more efficient and effective by having a lower inventory but still having stock available to maximize sales. Fulfill delivery promises by delivering on time. Meeting customer expectations by stocking products that are being promoted. Supply chain breakdown: amazon order fails to be delivered within 2 days.
