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Essay / Research Paper Abstract
A 5 page paper discussing supply chain problems at Exceso. The company has been caught up in "loading" at the end of the quarter to make analyst estimates to preserve stock price, but most activity is between wholesalers, diverters and large retailers as small retailers' shelves sit empty and consumers shift to other brands when they cannot find Exceso products. The paper illustrates the supply chain as it is and as it should be, and recommends that Exceso merely stop playing the game – take the hit for one quarter, halt the "underground" activity and ensure that sales are consumer driven rather than the result of supply chain entities selling to each other. Bibliography lists 4 sources.
Page Count:
5 pages (~225 words per page)
File: CC6_KSsupChnExceso.rtf
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Unformatted sample text from the term paper:
caught in the catch-22 situation in which so much of American business has been trapped for years. If it fails to "make the numbers," its share price will fall
as short-term investors sell off its stock. Reduced market capitalization and the recent decline in share price then makes the company appear unattractive to other investors, though Exceso may
be striving to build for the future legitimately and sustainably. Clearly this is not the case at Exceso at present, but there are indications that the growing unrest at
all levels of management regarding the companys loading tactics is approaching having some effect on managements decisions. Management has allowed to company to
be managed by analysts rather than by its own management for some time. It has reached the point that management needs to step up to take the company back
again. This will not set well with either analysts or investors, but it is a necessary action given the companys current position. The Supply Chain
The current supply chain reflects the reason for Hau L. Lees preference for the term "demand chain management" (Butman, 2002). Though supply houses and large retailers
(i.e., Wal-Mart and others) should deal directly with Exceso, the fact is that there is greater activity between these supply chain entities as well as diverters than there is between
the company and its supply houses and large retailers. Figure 1 illustrates. Figure 1. Current Supply Chain
In a more perfect world, the "demand chain" would take on an appearance much more like that illustrated in Figure 2. The value
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