A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for
Posted: Thu May 19, 2022 9:29 am
A recent meeting of the Council of Logistics Management
Professionals featured an executive from HP, which is known for its
ability to customize computers to customers' needs as well as its
ability to provide quality products at economical prices through
their retail channel. The executive discussed the firm's
capabilities regarding the ability to produce products that are
"built-to-order" and noted that recent customer insight showed
customers were less willing to wait 7 to 10 days to receive their
computer even though it was built to their specifications. As a
result of this customer trend, HP began forging relationships with
retailers such as Best Buy to provide a limited number of computer
models in the retailers' stores. In order to fulfill the orders to
Best Buy, HP was required to make changes in its production and
manufacturing such as holding more products in inventory and
utilizing different modes of transportation. For example, HP was
able to shift from a focus on air transportation to over-the-road
trucking, which enabled it to cut costs in some areas. As HP
shifted from a "build-to-order" manufacturer to a "make-to-stock"
manufacturer, it also had to make investments in customer analytics
to identify customer needs as well as collect insight regarding
pricing. This customer insight was especially important to the
retail partners like Best Buy, which requires its vendors to
justify product stock decisions and provide proof that retail
inventory will sell at the projected price points. HP's ability to
modify its business model by forging relationships with retailers
such as Best Buy as well as customer insights has helped the
company achieve its revenue and profitability goals.
Which environmental factor is exemplified by the customer trend
that no longer being willing to wait 7 to 10 days for a
"build-to-order" computer and which led HP to modify its business
model to become a "make-to-stock" manufacturer?
a)
b)
c)
d)
e)
Professionals featured an executive from HP, which is known for its
ability to customize computers to customers' needs as well as its
ability to provide quality products at economical prices through
their retail channel. The executive discussed the firm's
capabilities regarding the ability to produce products that are
"built-to-order" and noted that recent customer insight showed
customers were less willing to wait 7 to 10 days to receive their
computer even though it was built to their specifications. As a
result of this customer trend, HP began forging relationships with
retailers such as Best Buy to provide a limited number of computer
models in the retailers' stores. In order to fulfill the orders to
Best Buy, HP was required to make changes in its production and
manufacturing such as holding more products in inventory and
utilizing different modes of transportation. For example, HP was
able to shift from a focus on air transportation to over-the-road
trucking, which enabled it to cut costs in some areas. As HP
shifted from a "build-to-order" manufacturer to a "make-to-stock"
manufacturer, it also had to make investments in customer analytics
to identify customer needs as well as collect insight regarding
pricing. This customer insight was especially important to the
retail partners like Best Buy, which requires its vendors to
justify product stock decisions and provide proof that retail
inventory will sell at the projected price points. HP's ability to
modify its business model by forging relationships with retailers
such as Best Buy as well as customer insights has helped the
company achieve its revenue and profitability goals.
Which environmental factor is exemplified by the customer trend
that no longer being willing to wait 7 to 10 days for a
"build-to-order" computer and which led HP to modify its business
model to become a "make-to-stock" manufacturer?
a)
b)
c)
d)
e)