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BIS···
1. What is Limited Brands’ business strategy? How is supply chain management related to the company’s business strategy?
Limited Brands usually focus on the top grade products that most of them should be familiar to the consumers. The market objective of this company- Limited Brands is aimed at getting higher profit margin. To carry out this objective, the Limited Brands has developed a business strategy by giving stress on retailing higher-end products which carried the potential for higher profit margin in their stores. 65
A successful supply chain can help the company to reach the objective. The ultimate goal of Limited Brands is to create a supply chain that begins and ends with the customers (Limited Brands). It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed) (SCM, 2009).The supply chain management system is used among the company, suppliers, distributors and customers in order to delivery products to customers efficiently. Supply chain management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer (SCM, 2009). In this case, Limited Brands upgrades its old supply chain and decline the jumble of the old system in order to increase sales.
The supply chain management system always offers the latest information about demand to the different members of the system to keep the company working efficiently. If some wrong information of demand transfers from the system, the operation of the Limited Brands Company would crash. A situation like this happened to Limited Brands in 2002 due to the miscommunication between the different segments of the enterprise. Therefore, if all members of the supply chain upgrade the new information, the manufacturing and distribution will be more smoothly and quickly, the company will also increase the sales and raise the profit margin.
The supply chain management system supports the Limited Brands business strategy by managing the information of flow through the worldwide supply chain. The information flow involves transmitting ordersand updating the status of delivery (SCM, 2009). In this case, Limited Brands was struggling with scheduling issues and processing delays (Limited Brands). By using this supply chain system, the transmitting data can be upgraded in the same schedule. So supply chain management system helps all members of the supply in Limited Brands company do a good arrangement of the purchasing inventory and scheduling decisions.
Reference
Supply Chain Management System, 2009, SearchCIO.com Definitions, viewed 25 March, 2009,
<http://searchcio.techtarget.com/sDefinition/0,,sid182_gci214546,00.html >
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发表于 2009-3-23 22:41
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