Arrow Case Study
As some costumers were too small for the supplier to sell directly, they sell through distributors like Arrow with offering return privileges and price protection. Relationship with customers Arrow operates with two kinds of customers, transactional and relational customers. E former are customers that placed requests for quotes for one or a few product Ninth a number of distributors, while the latter are royal to the company. Orientations customers are price sensitive, thus sales people provide them with current pricing information and negotiate with them in order to offer them the best price. This customer segment is a major source of relational customers in the long run.
What is extremely important for Arrow is to find the right customers to develop long-term relationships.
They need the customers to invest along with them in recesses that enabled them to provide value added services. Allay Added for Supplier Arrow creates demand for the suppliers’ products (design win), enlarging their market share Arrow provides the inventory buffer for suppliers. Arrow pays the bills for them, stocks products and schedules orders with enough size and scale. Arrow identifies growth opportunities before anyone else does. Allay Added for Customer ere Customer benefits from Arrow of low cost parts, technical support, and short delivery lead-time.
Transaction Cost Reduction total Cost of Ownership Analysis – Helping companies to identify the total costs associated with particular activities or processes. Automated Replenishment – Reducing inventory and associated carrying costs. Electronic Data Interchange – EDI supported faster, more accurate, information transfer, which reduced supply chain costs, and improved productivity and made its customers more competitive. In-Plant Terminals – enabled IIS customers to check inventory availability, set up purchase orders, and to view component specifications, thereby improving productivity and educing acquisition costs.
Planning the Material Pipeline In-Plant Stores – On-site staff in-plant stores were responsible for all the selling process through customer- premises warehouses.
Ownership of material remained Ninth IIS until delivered, significantly reducing customers’ inventory-carrying costs. Turnkey Service – Arrow/Schaefer provided complete management of customers’ printed circuit board assembly requirements which decreases products’ time-to- meme and time-to-market. Improving Logistical Efficiency
Production Kitting – Supplying prepackaged kits to designated customer production racialists helped to reduce inventory-related expenses. Device Programming – Customers that programmed through Arrow/Schaefer avoided costly capital equipment expenditures and minimized product obsolescence. Complete Supply Chain Management Business Needs Analysis – making practical recommendations that provided sustainable results. Custom Computer Products (ICP) – reducing production costs and time to market thereby enhancing customers’ cash flow.