Intermediary Customer Purchasing from the Product Producer

Obtain Steps: The Obtain steps include all activities preceding the selling of the product. These activities include the costs of identifying potential suppliers and stocking the product.

Resources: Reduce resources required for the use of the product

2. Time – Reduce the time the customer must spend with the product

a. Reduce steps the customer must use with the product
Reduce customer steps in the product process

Move information electronically

No. SIC Year Note
1 2300 1998 With 35 distributor Web sites up and running, Fruit of the Loom's total investment works out to approximately $100,000 each. Company executives say the money was well spent because it improved time to fulfillment which increased distributor loyalty.
2 2322 2000 Stone Apparel, a private-label underwear maker moved production to the Caribbean, then bought a client-server-based system that wires customers like Target to the factory so they can receive on Wednesday what they order over the weekend. With that system and efficient overseas production, sales grew 40% last year.
3 2389 1991 Levi's has a "LeviLink" computer system that automatically replenishes retailers' inventories based on Levi's market studies, without receiving an order.
4 2731 1989 Publishers finally recognizing that distribution is "a much more vital part of the whole publishing process." 80% of Harper & Row's orders will have been sent from sales reps using electronic terminals by end of year. Gets books to customers faster.
5 5661 1996 Payless has an automated warehouse in Topeka with 17 acres under roof that can restock 1/2 of Payless' stores on as little as a day's notice. It can do a passing imitation of a popular dept store shoe style and have it in stock in just 120 days.

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