By Patricia Taboada vidal.
This case is about Exceso Company and all the problem that it have because their managersdidn’t choose a good strategy and as a result of this a bad supply chain.
Exceso Company is in the market of flagship and the premium product is“clickZipplus”. All the problems start when Martin seller, sales manager, did a bad estimation because the data that he used was not complete and contain mistake, the projectionthat he did say that the sells could increase in 9 percent. Then he used correct information, and he knew that sales would grow only three percent.
To reach thesales market they begin used a strategy of low prices and great discounts for retailers, but retailers saw that as a business opportunity and began to do “forwardbuy” (when buy low and sell high). Firstly the company didn’t have problems and everything was more than fine was amazing , it have a great order of 40,000clickzipplus, but then had adverse effects, not only on profits, but also the supply chain and the business as a whole.
All of the above leads to a problem in adistribution of the clickzipplus, and excess of local market and therefore high prices. This did a serious problem for Exceso because opened the door to theirrivals who had a good selection on the shelves and even the manager of the ValuMart had been recommending the substitute product.
Comment about the case:
In myopinion, this case can help to see how important global supply in the real business life is. Apart of this i feel that all that I learn in class I could apply.