Question
The ACME Supply Company has traditionally served the wholesale channel. Wholesale customers receive full or partial pallet shipments via LTL carriers.Order to ship is typically
The ACME Supply Company has traditionally served the wholesale channel. Wholesale customers receive full or partial pallet shipments via LTL carriers.Order to ship is typically next day for orders received prior to the cut-off time; delivery can take up 1 week for distant customers, with the average being about two days. Except for busy periods of the year, ACME's DC is open from Monday to Friday. ACME has a good relationship with its wholesale customers, built primarily on quality service. ACME, as a small company, is not the price leader in its market.
With the growth in home-based businesses, ACME believes there is an opportunity to directly reach end-consumers via an on-line, E-Tail channel. ACME has no experience in the E-tail business. You have been assigned to a project team which is responsible for evaluating the E-Tail market opportunity. Answer the following questions about ACME's E-Tail opportunity. You are expected to demonstrate critical thinking at the post graduate level - answers such as "It will cost more" or "Service will be higher" are insufficient. You are being challenged here to demonstrate your own personal understanding of channels and relationships based on our learnings from the course (not google). Answer below question:
ACME Supply is bringing on a new handheld battery powered vacuum that weighs 1.5 kgs and has package dimensions of 30 cm x 30 cm x 90 cm. The vacuum contains a lithium ion batter but is small enough to not be considered a dangerous good. The vacuum will be sold potentially through both the etailing channel and the existing wholesale channel. You have been tasked with developing a reverse strategy for this product. Using your course learnings, prepare a potential reverse logistics plan (including identifying the strategy) and make (and state) any reasonable necessary assumptions.
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