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  • Essay / Advantages and Disadvantages of Sears - 1292

    Advantages: In today's business environment, supply chain management is experiencing a period of rapid change and influence within organizations. It's no longer just about reducing costs, but more importantly about improving business value and adopting proven disciplines to leverage the supply chain for competitive differentiation, financial performance and operational excellence and demand-driven innovation. Sears Holdings Corp.'s supply chain operations are always trying to improve themselves to meet the needs of the business in a different location and also the needs of customers in delivering items within a short time. Sears has been testing a few new supply chain models that leverage existing inventory and existing retail distribution centers, meaning a small number of stores now fulfill online orders and help the company manage its network distribution. Which includes forty-five distribution centers and one hundred in-market delivery operations sites for cross-docking to ensure its nearly two and a half thousand retail locations remain stocked and online orders are fulfilled . Sears is now able to ship products to approximately 85% of the country in two days or less. This is accomplished by making the delivery process predictable, targeted and tightly controlled while simultaneously implementing supply chain best practices by experienced industry professionals. The new systems reflect the company's transition to an omnichannel retail approach. This software also helped Sears leverage its asset base. and make it available to customers who are not part of Sears Holdings and essentially play a 3PL role for them. This supply chain management software will minimize delays, all activities can be seamlessly coordinated and executed...... middle of paper ...... their last year's investment. Sears' ROI was down last year, they lost $1.4 billion, which hurt the company's growth and also led to record losses for the company. Their investment was penalized by poor end-of-year holiday sales. Holiday sales were down for Sears, so no profit was made on the investment last year. This chart shows how ROI has declined significantly for Sears in recent years. This chart shows that recently their ROI has dropped so much that they are not making any ROI. This hurts the investor and shareholder who operate and own Sears Corp. The company needs to work and see what they can do to change this and ensure they are making investments that will help them generate higher profits and revenue, such as having better sales during the holiday season..