레이블이 First Aid Supply List인 게시물을 표시합니다. 모든 게시물 표시
레이블이 First Aid Supply List인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 30일 토요일

About 'first aid suppliers'|...to go up. Beginning in 2015, the first large-scale natural gas export facilities...will be among the world's largest suppliers of natural gas, around the world. Imagine the...







About 'first aid suppliers'|...to go up. Beginning in 2015, the first large-scale natural gas export facilities...will be among the world's largest suppliers of natural gas, around the world. Imagine the...








Known               to               all               customers,               inventory               is               the               key               to               going               to               any               store.

If               the               supplies               are               not               there,               customers               lose               faith               in               their               supplier               and               look               elsewhere               for               the               merchandise.

Perhaps               the               biggest               problem               K-mart               has               is               its               ability               to               keep               stock               on               the               shelves.

K-mart               in               2001               was               able               to               keep               its               goods               fully               stocked               on               shelves               only               86%               of               the               time.

In               the               industry,               anything               less               than               90%               is               considered               unacceptable.

Wal-Mart,               however,               runs               close               to               100%.

Wal-Mart               and               others               have               emphasized               "everyday               low               price"               selling,               which               is               more               predictable               for               both               customers               and               the               distribution               system.

Inventory,               for               such               retailers               as               K-mart               is               having               a               negative               effect.

On               the               average,               K-mart's               inventory               swells               up               as               sales               fall.

In               the               beginning               of               2002,               for               example,               inventories               rose               by               5.6%               as               sales               fell               for               K-mart.

It               is               estimated               that               K-mart's               cash               flow               would               drop               by               $40               million               for               each               1%               increase               in               inventory               if               this               problem               persisted.

The               bottom               line               is               that               in               the               third               quarter               of               2001,               Wal-Mart               raked               in               $52.7               Billion               Dollars               while               K-mart               only               made               $8               Billion               (Saporito,               Buamohl,               Szczesny).

Wal-Mart               is               the               power               house               it               is               today               because               of               its               readiness               to               share               information               with               its               suppliers.

As               the               store               chain               saw               the               benefits               of               sharing               data               with               suppliers,               they               moved               the               information               online               on               its               Retail               Link               Web               site.

Rena               Granofsky,               a               senior               partner               at               J.C.

Williams               Group               Ltd.,               a               Toronto-based               retail               consulting               firms               says               that               Wal-Mart               approached               its               suppliers               as               if               they               were               partners               and               not               adversaries,               and               by               implementing               such               a               collaborative               planning,               forecasting               and               replenishment               program,               they               have               began               a               just-in-time               inventory               program               that               reduced               carrying               costs               for               both               the               retailer               and               its               supplier.

Therefore               there               is               a               lot               less               excess               inventory               in               the               supply               chain               because               of               this               system.

This               type               of               efficiency               is               a               key               in               maintaining               low               price               leadership               amount               retailers               as               well               as               allowing               for               far               lower               cost               margins               due               to               the               supply               chain.

The               company's               cost               of               goods               is               estimated               5%               to               10%
               less               than               most               of               its               competitors               (Johnson).

Basically               Wal-Mart               is               better               at               obtaining               better               terms               from               suppliers               and               having               lower               overhead.

Due               to               this,               Wal-Mart               sales               rose               15.5%               in               the               third               quarter               of               2001.
               K-mart's               problems               stem               from               poor               marketing               strategy               to               lack               of               innovation.

Its               management               team               has               made               some               very               poor               choices               when               it               comes               to               a               marketing               strategy               which               detrimentally               affected               its               supply               chain.

Everyone               remembers               K-mart's               famous               "Blue               Light"               specials,               as               the               retailer               used               advertising               circulars               to               lure               customers.

Even               though               this               worked,               it               also               put               a               strain               on               merchandising               and               distribution               systems               because               particular               demand               for               items               came               in               sudden               waves.

It               also               opened               the               door               to               product               mistakes               leaving               K-mart               with               either               too               much               of               one               product               or               not               enough               of               another.

Promotions               also               forced               costs               up               at               K-mart's               suppliers,               as               they               could               not               reliably               predict               manufacturing               runs.

Furthermore,               after               finding               out               that               ad               circulars               did               not               work               as               well               as               they               used               to               because               of               the               massive               waves               of               merchandise               ads,               K-mart               decided               to               take               itself               away               from               the               weekly               circulars.

However,               in               the               third               quarter               of               2001,               the               company               cut               back               too               fast               and               left               loyal               ad               customers               in               the               cold.

Although               management               did               try               to               counteract               the               problem               by               cutting               prices               on               some               $38,000               worth               of               items,               without               the               ads               customers               were               not               informed               of               the               price               cut               and               this               resulted               in               K-mart               sales               dropping               by               2.2%               in               the               third               quarter.

At               the               same               time,               Wal-Mart               management               caught               on               to               the               price               cuts               and               followed               suit               reeling               in               even               more               customers               than               before               (Saporito,               Baumohl,               Szczesny).
               In               order               to               counteract               supply               chain               problems,               technology               had               to               play               a               large               role               in               the               distribution               process.

Unfortunately,               while               Wal-Mart               was               a               pioneer               of               using               technology               in               the               distribution               process,               K-mart               only               recently               started               this               venture.

Wal-Mart               invested               in               technological               systems               earlier               than               most               of               its               competitors,               starting               to               use               computers               to               track               inventory               in               1969.

In               1980               it               was               the               first               to               adopt               bar               codes               and               in               1985               it               instituted               Electronic               Data               Interchange               which               rang               up               sales               and               tracked               inventory               deductions               to               better               coordinate               with               suppliers.

Wireless               scanning               guns               were               later               used               in               the               late               1980's.

In               1987               a               massive               satellite               system               linked               all               of               the               stores'               company               headquarters,               enabling               Wal-Mart's               centralized               IT               department               to               view               real-time               inventory               data               (Johnson).

These               implementations               allowed               Wal-Mart               to               reduce               its               inventory               and               gain               savings.
               In               2002,               K-Mart's               CEO               James               Conaway               started               trying               to               figure               out               how               to               lead               the               chain               out               of               its               supply               chain               troubles.

He               determined               that               the               problem               lied               in               underinvestment               in               technology.

The               scanners               in               the               stores               were               outdated               and               didn't               feed               purchasing               information               back               to               headquarters               leaving               the               central               planning               system               without               enough               information               about               what               customers               wanted               in               terms               of               inventory.

Forbes               Magazine               noted               that               when               Conaway               came               to               K-Mart,               late               delivery               to               stores               by               distribution               centers               was               11%               of               the               time               or               1               in               10               deliveries.

This               was               a               big               setback               as               most               retailers               are               late               only               5%               of               the               time.

Even               when               the               inventory               was               being               received               by               the               stores               on               time,               the               supply               chain               on               average               was               wrong               on               15%               of               stores'               orders               received               from               distribution               centers.

In               an               effort               to               fix               the               detrimental               effects               of               the               lack               of               technological               capability               for               the               K-Mart               Corporation,               the               new               CEO               devoted               $1.7               billion               to               upgrade               store               and               back-office               technology               including               new               software               to               fix               the               problems.

There               was               an               additional               $200               million               invested               on               high-tech               checkout               scanners               from               IBM.

Also,               a               new               project,               "Project               Elmo,"               was               devoted               to               a               400-person               initiative               to               combine               two               separate               hard-line               and               soft-line               purchasing               systems               into               one.

This               conversion               would               eliminate               5,000               computer               jobs               and               get               merchandise               to               the               stores               two               weeks               faster.

There               would               also               be               a               renovation               of               demand-planning               and               forecasting               software               to               get               the               right               goods               into               stores,               reducing               the               replenishment               cycle               from               the               current               5-7               day               levels               to               between               48-72               hours               (Hartmann).

However               it               would               take               some               time               before               these               changes               could               be               fully               implemented               and               used               efficiently               to               turn               things               around               for               K-Mart.
               Business               Week               author               Joann               Muller               thinks               that               adding               full-line               groceries               to               core               urban               stores,               developing               more               unique,               fixing               supply               chain               problems,               and               improving               marketing               to               give               consumers               a               reason               to               shop,               will               significantly               help               K-mart's               problems               (Muller).

If               K-Mart               had               been               as               efficient               in               selling               as               Wal-Mart,               it               could               have               earned               $200               million               in               the               third               quarter               of               the               2001               season               instead               of               losing               $224               million.

During               the               critical               Christmas               season               2001,               Wal-Mart               increased               sales               by               an               estimated               6%;               K-Mart               will               probably               report               a               2%               decrease               (Saporito,               Baumohl,               Szczesny).

It               will               take               a               lot               of               catch               up               and               innovation               before               K-Mart               can               make               up               for               its               lack               of               innovation               and               efficiency               in               its               supply               chain               management               and               retail               business               to               even               get               close               to               the               retail               giant               Wal-Mart's               numbers.

Furthermore,               Wal-Mart               is               making               it               even               harder               for               others               by               still               innovating               and               staying               on               top               of               the               supply               chain               management               system.

It               is               always               attempting               to               make               its               IT               infrastructure               more               efficient,               most               recently               with               planned               radio               frequency               identification               (RFID)               microchips,               replacing               bar               codes               and               security               tags               with               a               combination               technology               that               costs               less               money               (Johnson).

This               will               definitely               make               Wal-Mart               an               unstoppable               force               as               it               keeps               setting               the               highest               standard               in               the               industry.
               
               Works               Cited
               Hartmann,               Chris.

"Hospitality               Industry               Innovation               in               Technology               A               call               to               Arms."               HVS               International.

2/11/02.
               Johnson,               Amy               Helen.

"A               New               Supply               Chain               Forged."               Computer               World.

9/30/2002.

http://www.computerworld.com/industrytopics/retail/story/0,10801,74647,00.html.
               Muller,               Joann.

"Attention               Kmart:               Find               a               Niche."               Business               Week.

2/4/2002.

Issue               3768,               p72.
               Saporito,               Bill               and               Baumohl,               Bernard               and               Szczesny,               Joseph               R.

"K               Mart's               Blue               Period."               Time.

1/14/2002.

Vol.

159,               Issue               2,               p45.

http://www.hvsinternational.com/Jump/?aid=316&rt=2






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