10.+Sams+Club-Value+Delivery+Network - Sams Club: Value...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Sam’s Club: Value Delivery Network Like other high-volume retailers that operate on razor-thin margins, Sam’s Club always looks for ways to share costs and improve efficiency in order to distribute large amounts of grocery and other items to its hundreds of stores quickly and inexpensively. Heather, at the time, oversaw the dairy category along with eight other merchandise categories for Sam’s Club. Collectively, her team had the responsibility to source over 600 items, negotiate costs, and specify delivery methods and prices for the chain’s more than 47 million club members across the United States. Ironically, milk is one of the most basic stable items the team stocks in its stores, but it is difficult to supply economically because it takes up a lot of space and is highly perishable. Heather and her team tried to address the problem of the high cost of shipping milk using traditional distribution methods. Shippers and end consumers tend to stick with what they know, and what they know is that the milk people use every day will come out of familiar gallon just as it always has – the jug’s design has not changed since 1953! But Heather knew that something had to give.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

10.+Sams+Club-Value+Delivery+Network - Sams Club: Value...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online