Jct Task 3 Kekiretsu Marketing Strategy
JCT Task 3
Rose V. St. Louis
Western Governors University
A. Supply Chain Strategy
Metrics Management recommends that Power Metrics (PMT) Tools integrates the Keiretsu network as their supply chain strategy. The versatility of the Keiretsu network is the primary reason for the suggestion of its integration. Keiretsu a unique form of corporate organization; the word Keiretsu itself, “…a Japanese term describing a loose conglomeration of firms sharing one or more common denominators. The companies don’t necessarily need to own equity in each other” (Investopedia, np). In simpler terms a Keiretsu network allows a company to use a hybrid of purchasing avenues from few suppliers to shrink the purchasing process. It allows the company to respond relatively quickly to customer’s needs. “Each major keiretsu is capable of controlling nearly every aspect of the economic chain in a variety of industrial, resources and service sectors.
Once integrated, a Keiretsu network can operate in one of two ways: vertically or horizontally. Horizontal keiretsu are typically organized around and headed by major banks. From this top …show more content…
In the corporate industry this is referred to as the ordering of large lots. These “lots” come in the form of whole truckloads of products. This method of ordering is usually a result of a cost saving effort, as large lot orders usually have lower unit costs. By order product in this manner, production and shipping costs are reduced. However, large amounts of inventory via one order, are not always an accurate projection of sales. This can lead to companies encountering the “Bullwhip effect.” This term refers to the consequence of disorganization in the supply chain. It sometimes explains a large variance in product from the sales end to the customer. This often occurs when companies overestimate product
Rose V. St. Louis
Western Governors University
A. Supply Chain Strategy
Metrics Management recommends that Power Metrics (PMT) Tools integrates the Keiretsu network as their supply chain strategy. The versatility of the Keiretsu network is the primary reason for the suggestion of its integration. Keiretsu a unique form of corporate organization; the word Keiretsu itself, “…a Japanese term describing a loose conglomeration of firms sharing one or more common denominators. The companies don’t necessarily need to own equity in each other” (Investopedia, np). In simpler terms a Keiretsu network allows a company to use a hybrid of purchasing avenues from few suppliers to shrink the purchasing process. It allows the company to respond relatively quickly to customer’s needs. “Each major keiretsu is capable of controlling nearly every aspect of the economic chain in a variety of industrial, resources and service sectors.
Once integrated, a Keiretsu network can operate in one of two ways: vertically or horizontally. Horizontal keiretsu are typically organized around and headed by major banks. From this top …show more content…
In the corporate industry this is referred to as the ordering of large lots. These “lots” come in the form of whole truckloads of products. This method of ordering is usually a result of a cost saving effort, as large lot orders usually have lower unit costs. By order product in this manner, production and shipping costs are reduced. However, large amounts of inventory via one order, are not always an accurate projection of sales. This can lead to companies encountering the “Bullwhip effect.” This term refers to the consequence of disorganization in the supply chain. It sometimes explains a large variance in product from the sales end to the customer. This often occurs when companies overestimate product