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You Can Put a Price on That

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Jacob
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Supply Network Guru
Re: Hidden value
Jacob   11/2/2011 11:46:17 PM
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I think online sales can be better alternate for cost reduction and to avoid the third part involvements. The user can select the components from online catalogue and place the order online. These orders can be executed in factories/godowns and they can dispatch the order at the earliest. There are mainly two advantages from such online procedure. First of all pricing is less, when compare with the vendors and secondly speedy delivery of the item.

_hm
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Supply Network Guru
Pragmatic approach
_hm   11/2/2011 8:35:30 PM
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ABC is good analysis tool. It can find out many leakages in expenses. But, it should be used pragmatically. Some expenses are desirable. They have hidden and long term advantages. You should not price tag in simplistic manner.

TaimoorZ
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Supply Network Guru
Other activities by distributors
TaimoorZ   11/2/2011 4:33:10 PM
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If we are trying to break down into the activities a distributor typically does and putting a cost to them, how about things like advising your customers and helping them out with ordering, and providing market feedback and consumer insights to the manufacturers? Surely these are important functions and there's a cost (and hence a price) associated with these.

Ms. Daisy
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Supply Network Guru
Re: Hidden value
Ms. Daisy   11/2/2011 1:30:20 PM
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Its is great that the distributors provide this service, but to expect that some of the cost from the ABC is not passed to the small businesses that benefit from the product distribution may be asking too much of them. I believe some of the "free" services is what is referred to as customer service and this is also an indirect service to the the customers which goes a long way in building good business relationships!

Ariella
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Supply Network Guru
re: putting a price on every step
Ariella   11/2/2011 12:56:00 PM
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That concept is not a new one. In a book I'm reading about the author's mother's life, he describes her job during WWII. It was to use a comptometer to add up every cost factor of production to arrive at a price that included a profit.

Eldredge
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Supply Network Guru
Re: Hidden value
Eldredge   11/2/2011 10:36:35 AM
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@Flyingscot  - Exactly right. distribution provides a service for small companies that would be difficult to replace.

Jay_Bond
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Supply Network Guru
re:
Jay_Bond   11/2/2011 7:06:53 AM
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I find it amazing that more companies haven't tried to put price tags on everything they do to maximize their profits. I don't agree with the process, but you can't continue to give things away for free while taking away from items that will make money.  It is amazing how distributors still have to prove themselves worthy every year, even if they are in good standing with the suppliers and customers.

FLYINGSCOT
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Supply Network Guru
Hidden value
FLYINGSCOT   11/2/2011 5:24:46 AM
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For smaller suppliers the distribution channel provides coverage that would otherwise be impossible.  ABC would value that (I reckon) a lot less than is actually charged by the distribution channel.



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