Audio Duplication Services Case

Audio Duplication Services case

Shaimaa AL-Bukhaiti

LY2017087

Questions: -

1. Why are ADS’s customers’ customers moving towards VMI arrangements?

ADS’s customers’ customers are moving towards the VMI arrangement it is because the out of stock and the inventory level are reduced in supply chain. in addition, through VMI can accomplish because the retailers could provide a continuously updated point-of-sale (POS) from each of the stores.as a result of let the record companies updating with the details about the quantity of album, CD, and cassette and when the product will be delivered due to their data will update and the delivery time also will more accurate.  

1. How will this impact ADS’s business? How can ADS management take advantage of this situation?

This VMI arrangement will have a huge impact on ADS.so, the ADS management have to take this advantage in VIM arrangement because VIM arrangement provide more details and be updating with the inventory level, and the retailers can be providing with updated POS form each record company, so through this advantage ADS could enhance the cost of (transportation, maintenance and inventory holding) and deliver the product on time, as reflect of that ADS will have a good relationship between buyers and suppliers ,also it will be updated with information system.

1. How should ADS manage logistics?

The ADS should manage logistics by hiring a third-party logistics to manage the logistics in their supply chain because by doing this step the ADS could now focus on their competency of cassette duplication. Also, the direct shipping to the stores would increase of shipping cost for ADS because of that hiring a third-party logistics is a good decision for the company because the product distribution will be more efficient, also will be manage effectively by third party to each store.

1. Why are the large national retailers moving toward a direct shipment model?

The large national retailers moving toward a direct shipment model because direct shipment is important in any business because thought it the companies will save and reduce the time as well as the cost by using this type of shipment. Also, its responsibilities have enhanced.