This Blog has been created for my MGT 656 class for MBA at the Murray State University. The goal of this blog is to monitor the public activities of the Family Dollar Corporation in relation to what I am learning and have learned in my studies. I will integrate my professional experiences and perspectives of product sourcing in the wholesale and retail industries to the blog as well.
About Me
- Brent- Family Dollar
- I have a background in sales and product management. I enjoy finding products that make it to the retail shelves and sell. I am wired half creative and analytical. I tend to see both sides of the issue. I know how to approach things rationally and I can switch gears to think “outside the box”. I enjoy traveling. I have had the opportunity to travel to many places in the world: Europe, South America, Asia, and Africa. I try to take on a global perspective when looking at the dynamics that are effecting an industry becasue we are in global economy.
Monday, October 18, 2010
Strategic Fits in Supply Chain Activities
Family dollar enjoys some economic advantages from the size of their business when it comes to suppliers. These economies of scales allow them to pick and choose who they want to get products from based on benefit packages. They can go direct to manufacturer to get private labels because of the volume of products they have. They can bypass domestic distribution supply chains and move straight to the source when the intermediaries add no tangible benefits. Why should they buy paper products for a brand name when they can use a private label and save 30% off cost and give the customer a lower price and free up income to maximize the customer’s utility. They can partner with the same guys that make brand name chemicals, food, or paper products and have private labels. At such a value level of retail the customers are there to save money. If the products are close substitutes and maximizing income is the goal of consumers these strategic relationships literally makes cents.
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