Supply Chain & Retail Analysis Case Study
Problem:
The Director of Category Strategy at a Fortune 50 technology company approached Kaiser Associates to provide insight to the complete range of supply chain challenges his company would face upon entering an adjacent market dominated by a single key competitor. It was agreed that the client would benefit most from a set of detailed analyses on the market and a deep understanding of the manufacturing, distribution, and retail operations required to execute.
Kaiser's Approach:
Based on extensive research with suppliers, industry experts, vendors, and employees of companies in similar situations, Kaiser recognized that the market leader's competitive advantage was derived from non-traditional long term component contracts rather than downstream supply chain management and aggressive retailing as the client believed at the outset of the research. Led by insights from Kaiser's contributions, the client redirected its efforts from enhancing downstream supply chain functions to focus on upstream supplier strategies. Findings from the research helped the client to exert considerable leverage in partnership formation and negotiation which resulted in a number of highly advantageous supplier agreements.
Results:
The insights and conclusions developed by Kaiser Associates over the course of this project have continued to serve as critical inputs to key decisions impacting the entire organization. Due in large part to Kaiser's analysis, the client made a strategic decision to delay or cancel an aggressive retail approach that ultimately would have cost over $100M.
