Target gives up on Canada
Poor supply chain management pushed Target off the cliff in the Canadian market. Target Corp., which is based in Minneapolis, announced it is closing their 133 stores in Canada and laying off around 17,000 workers. One of the reasons for the company’s bankruptcy is the failure to take into account Canadian shopping intricacies. Target established stores in run-down neighborhoods, which diminished customers’ image of the company’s brand. Differences in suppliers, alongside other reasons, led to higher prices than Canadians where anticipating. In addition, faulty distribution networks resulted in empty shelves and dissatisfied customers. Target’s failure in international expansion demonstrates how essential it is to thoroughly plan supply chain processes.
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Xiaomi’s supply chain tricks
Xiaomi, the world’s third top selling phone maker and the top smartphone seller in China, is known for offering low prices which led to over 60 million sales in 2014. The company’s successful supply chain management is partly responsible for their ability to implement aggressive pricing. According to Hugo Barra, the VP of Xiaomi International, a small portfolio and longer average selling time per device provides Xiaomi with a competitive advantage and allows for lower price points. A longer life cycle of a smartphone gives Xiaomi leverage to negotiate better components’ prices with its suppliers. As phones in the company’s portfolio share the majority of the same parts, better supplier contracts allows Xiaomi to set low prices, even for their new devices.
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Soccer logistics
Last year DHL established a platinum partnership with FC Bayern Munich and became the soccer club’s international logistics and ecommerce full-service partner. The agreement will last for six years and is aiming to capitalize on FC Bayern Munich’s global merchandising potential and expand its international presence. Recently, DHL accommodated the soccer club’s move to their winter training camp in Doha, Qatar by shipping the key equipment. According to DHL infographics, the company shipped: 382kg of training gear, 329kg medical equipment, 160Kg match gear, 64kg soccer balls for training, 128kg autograph cards, etc.
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Have a nice weekend!
