Intermediary Purchasing from the Producer of the Product
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.
B. Needs to avoid sources of anxiety
2. Limitations set by time: Segment customers according to the causes of limitations set by time.
Delay related to purchase and installation: Segment customers according to delays before the customer receives or can use the product.
Segments where delays create risk for customer
|Wal-Mart is Cott's biggest customer. Cott offered its larger customers more regular telephone contact with more senior Cott executives.
|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.
|U.S. apparel manufacturers use computerized inventory & ordering networks to create powerful networks that tie together domestic mills, truckers, cutters & customers. Result: U.S. mills can deliver fabric in 1/3 the time it takes to come from Taiwan.
|Levi's has a "LeviLink" computer system that automatically replenishes retailers' inventories based on Levi's market studies, without receiving an order.
|Latin American clothing manufacturers will soon face increased competition as U.S. legislation dismantled the tariff system. Koramsa is investing millions to speed up production and variety. The company can churn out 90 styles at a time in every imaginable color and finish and transport the goods to Miami in just two days. Orders can be adjusted later and the company hopes this flexibility will win over buyers who may lean towards cheaper Chinese products.
|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 which gets books to customers faster.
|Steven Madden Ltd. keeps close tabs on its inventories by monitoring production every day and adjusting levels to match sales trends at retail. A new automatic ordering system linking the company to key retail customers has boosted profit margins.
|Wexner's stores (Limited) use 747 jumbo jet shipments direct to Limited's Columbus distribution center, to re-supply stores with hot items in just weeks, compared with months required by most retailers.
|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.
|New Century Financial Corp expanded to the East Coast and the loan production has nearly doubled in the last year. The company also debuted a new technology initiative called FastQual which cuts the time it takes to make underwriting and pricing decisions. It reduces the likelihood brokers will shop around for another lender.
|The company estimated it could increase the paid annualized premium for its premiere partners by 10% – 15% if it could issue all policies within three weeks of receiving the applications, offer periodic application status reports, simplify the submission process.
|Digital cinemas would save Hollywood studios millions by lowering distribution costs. Theater owners would benefit from the high-quality movies and the ability to show live events on the screens. While conventional films have to be shipped, digital films can be sent via broadband cable or satellite. Movies would be delivered quickly to all areas, undercutting one of the motivations for movie piracy. Digital Cinema Initiatives has laid out the final tech standards which will ensure industry compatibility.
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