Managing Supply Chains and Marketing Channels
Managing Supply Chains and Marketing Channels
Managing Supply Chains and Marketing Channels
The Tot Tracker will incorporate the GPS and drone technology. A jewelry handset connected to the camera on the monitor for viewing the location of the child. Therefore, the company will contact the following input sources for implementing the idea.
The Drone Manufacturers
The organization will seek the designers of the equipment from DJI Innovations. It is based in Shenzhen, China. The corporation’s products are ready-to-fly and fitted with a GoPro camera for a sensational video capture being the leader of producing quadcopters. 3D Robotics is the second most potential supplier of prominent copters that are fitted with prominent GPS services. It is based in Berkeley, California. The third dealer in the equipment range is Blade. Its drones are highly reliable due to their SAFE features. The quadcopters are unproblematic and effective for conducting missions for a long duration. Finally, mobile-app controlled equipment is produced by Parrot, a French-based firm. It is much renowned for its highly featured drones controlled through smartphone applications. Therefore, the manufacturer can install the equipment and link with the Tot Tracker’s systems. It will train the organization’s team on launching, monitoring and reading signals (Rosenbloom, 2012). The contractor will induct the team at Tot Tracker on planning and operating system. A period of simulation will be run the trader’s specialists for six months and hand over to our operators. The period is important to foresee and handle elements of customizing the products to the client’s needs. Similarly, the potential challenges and failures can be handled by the owners beforehand. Secondly, the dealer will transport the purchases to the plants. Third, the seller will offer a warranty of performance, whereby it will guarantee the suitability of the gadgets for one year. Any repairs breakdowns and replacement needed will be serviced from the manufacturer’s account. Therefore, the process will include a maintenance contract for the facilities (Rose & Reeves, 2017).
NFS will serve as a supplier of the tracking devices. It offers a package of inputs, including the smartphone with panic buttons and the GPS application. The tool also has a dedicated GSM gadget, special radio, and satellite contraption. A budget friendly order can be developed by the vendor and can customize it to suit operational requirements of customers. NFS has an Orion system that regularly gives updates on the activities in the area under coverage.
The second supplier of the GPS tracking gadgets is San Jose Technology Inc. based in Taiwan. It offers customized GPS/GSM transponders and several antennas. The vendor can also offer integrated hardware solutions together with the connectivity of Wi-Fi. Since the firm is a developer of a tracking kit designed to fit our specification, it will design the specific needs.
The third dealer that the Tot Tracker Company will contract is Apple Inc. For the giant communication firm, they will provide the personal computers that complete the Tot Tracker kit. The supplier will provide high-quality laptops, tabs, and iPads that will be used by independent customers to monitor the movements of their kids. A worldwide network provided by the dealer will allow the firm to gain a global reach to the premium markets. The machines designed and sold by Apple Inc. have a closed-end system that promotes privacy and personal security (Dudovskiy, 2017). Besides, the corporation works hand-in-hand with partners to customize its computers.
The three providers will offer after sales package. It will involve transporting, training the staff on operations and maintenance of the equipment. They will also give a warranty period, during which any repairs, spare parts, and breakdowns will be taken care of by manufacturers. The major reason for sourcing from the original equipment makers is two-fold. Firstly, they will customize the inputs to fit the Tot Tracker’s needs. It includes meeting the design specifications. After assessing and developing a prototype, the organization will work with the producers in their labs. It will increase effectiveness as only properly working drones and GPS trackers supplied for the final assembly. Secondly, outsourcing manufacturing of parts to leading technology companies will lead to superior items delivered at a low price due to a discount (Rosenbloom, 2012).
Distribution Channel Network
The company will distribute its products across the world using the best four logistics providers globally. Avnet is the first partner that will distribute the Tot Tracker across all continents. Based in Phoenix, it leads in sales and disseminating the electronics and parts from the original equipment manufacturers to users. Furthermore, the company has an online portal, Avnet Express, to facilitate internet services to its clients. The second vendor that offers the largest customer base is Arrow. It has more than 130,000 clients that purchase its supplies for reselling to wholesalers and retailers. The firm is based in New York and boosts of a global logistics distribution channel reaching to more than 50 nations. Arrow offers its clients opportunities to make online orders and track the deliveries to the buyers’ premises. Finally, Premier Farnell is a UK-based vendor that deals with distributing electronic components as well as design services. It is located in London and will serve the European market with the Tot Tracker. The distributor serves online, catalog, direct mail, and field sales. It has established network branches and trade counters in its markets. The company operates in more than 20 countries with its support services reaching over 100 nations. ATT distribution is the fourth partner that will partner in delivering the products from Tot Tracker facilities. It has a well-established chain of operations in Asia and will widen the target market.
The final chain partners of the Tot Tracker are a group of top retail chains in the world. First, Wal-Mart stores have a presence on almost every continent. It is the leading in the U.S. and deals with the average and bargain clients (Lee & Rogers, 2016). Therefore, it offers a large customer base for the product. The second retailer is Costco Wholesalers Corporation, which also takes the number two position in its reach and sales. Amazon will be the third retailer to be engaged in selling the Tot Tracker in the U.S. and abroad through its internet platform. The chain offers great market base and reaches for its clients scattered across the world. It has the largest sales revenue regarding online purchases. Therefore, the store will offer the company a better digital segment landing. Tesco is a UK chain that has its clinch in the Europe as well as American market. It will assist in fulfilling the orders for the region plus its neighboring markets (Hutt & Speh, 2012).
Diagram of the distribution channel
Role – Value Additions
The logistics companies and the retail channel members will offer a wide range of value-adding services. First, the distributors will deliver the products from the manufacturer’s premises to the stores of the wholesalers and retailers (Hutt & Speh, 2012). It will expand the reach of the gadgets and increases accessibility to clients. Secondly, the two members will assist in marketing the products through sales promotions and testing. A push strategy will be employed by the children tracking company to encourage the dealers and resellers to stock and sell the gadgets. For instance, the channel partners will chip in at their level, when the Tot Tracker designs a campaign. Regarding this, Wal-Mart can jointly conduct a sales promotion with Avnet to inform clients about trackers. Similarly, the firm will create coupons and execute them in collaboration with retailers like Tesco, Costco, and Amazon to affect a pull strategy. It will boost the marketing efforts of the manufacturer as more clients are drawn to the stores by the incentive (Piercy, 2014).
The third role that the channel partners play is sorting and regrouping the products. The Tot Tracker Company will produce large quantities and deliver to the retailers. On the other hand, the stores will facilitate selling out the devices in smaller volumes to individual customers. Therefore, they will provide varying assortments of the items to different buyers (Rosenbloom, 2012).
Fourth, the channel partners will carry the function of storing and managing the inventories of the supplies from the manufacturer. The retailers will assist in managing the demand and reporting trends to the producer by evaluating the sales volumes. Furthermore, storage extends to tracking and protecting the goods on transit to delivery. The suppliers and wholesalers create a significant value, since the service represents a cost.
Finally, the channel members, particularly retail stores, act as service centers to offer personal assistance and training to customers (Pradiptarini, 2011). The company will place its support staff at exclusive chains to assist the buyers on the user manual. It will also provide significant information concerning the complaints comments and needs of the target market. Therefore, the distributors and retailers share the risk of ownership as well as supporting with essential market intelligence information.
Dudovskiy, J. (2017). Apple Segmentation, Targeting, and Positioning. Retrieved on April 20, 2017 from Research Methodology: http://research-methodology.net/apple-segmentation-targeting-and-positioning/
Hutt, M., & Speh, T. (2012). Business Marketing Management. New York: Cengage Brain.
Lee, R., & Rogers, D. (2016). Strategic Opportunities And Decision-Making – A Case Study Of Apple Computers. Retrieved on April 20, 2017 from ISCM: http://www.iscm.com.au/2016/04/06/strategic-opportunities-and-decision-making-a-case-study-of-apple-computers/
Piercy, N. (2014). Marketing Organization. New York: IGI Publishers.
Pradiptarini, C. (2011). Social Media Marketing: Measuring Its Effectiveness and Finding the Target Market. UWL-Journal of Undergraduate Research, pp. 1-10.
Rose, J., & Reeves, M. (2017). Rethinking Your Supply Chain in an Era of Protectionism. Retrieved on April 20, 2017 from Harvard Business Review: https://hbr.org/2017/03/rethinking-your-supply-chain-in-an-era-of-protectionism
Rosenbloom, B. (2012). Marketing Channels. New York: Cengage Learning.