Retail and Supply Chain Management

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Table of Contents

Product Offering, Target Market and Customer Service
Supply Chain Management and Logistics
Technology, Its Impacts and E-Commerce
Store Design and Location
Pricing and Promotion
Reference List

Product Offering, Target Market and Customer Service

Fair Do’s is a non profit company. It offers cheap and unique products from third world countries which are not well-off economically. Therefore, underpinning its operations on fair trade, Fair Do’s offers the populace from these countries a chance to trade their products. The company’s range of products is not well-defined. This is considering the fact that the suppliers do not come from the same geographical locations.

Fair Do’s, therefore, offers products ranging from compact discs, clothes, foods and beverages, and toys among others. It is crucial to note that these products are not modified, whatsoever. They are stocked in their original form in the shops. These shops are approved by the British Association for Fair Trade Shops (BAFTS) and/or the World Fair Trade Organisation (WFTO) (Fair Do, 2011).

The suppliers of this small scale company are not distinct, either. This is because the company has a policy that guides its operations. It must source its products from suppliers or people who do not have well-off backgrounds. However, the company gets its products from Europe and the Americas sometimes.

It is important to note that creative products are the focus of Fair Do’s. These products include designed pots from Africa, hand-made ornaments from Egypt, Somalia and Kenya, beauty products made from people’s hands, among others. This is in line with the fact that economics should be mixed with Fair Trade. This is the belief of the company, hence, its line of interest in suppliers and customers (Fair Do, 2011).

All these products are sold all over the world. But, mainly, the target market is developed countries. These countries are the focal point from which the market base of fair dos is situated. The company believes in putting people first. This includes its customer base, supply base, workers and volunteers. The argument is that they provide the company with the needed impetus in its policy application.

This explains the reason why the company is so particular with the quality and uniqueness of products it offers in the market. Its customer service is unique in its own way. There is also belief that the company offers products at different prices. Firstly, the price is fixed. However, a customer can offer to buy at a higher price going by the company needs to promote the direct producers from whom it buys the products (Fair Do, 2011).

Supply Chain Management and Logistics

Fair dos supply chain and logistics management is quite complicated. As noted earlier, the company does not offer products from specific suppliers. It only sources products from fair trade accredited companies. The accreditation is received from British Association for Fair Trade Shops (BAFTS) and/or the World Fair Trade Organisation (WFTO).

This essentially limits the planning of this department. Fair trade means that the company believes in paying a fair price to the suppliers. Hence, it cannot pass on the burden of supply costs to the suppliers. Therefore, although it is a company it essentially makes no profits. Most of the costs are associated with supply and logistics (Boyer, 2010).

The suppliers of these products are mainly from third world countries. These are the countries where the balance of trade is grossly against. However, there can be second tier suppliers who are also accredited for fair trading that can supply to fair do. However, these suppliers do not last long and may occasionally close down. An example is the recently closed shop where fair do was buying Peruvian hand made ceramics.

This partnership is also witnessed in its trade with Rwanda and Kenya. In Kenya there is a second tier supplier, Kazuri, which stocks the Masai and Kambas necklaces and hand products. In Rwanda the company coalesces with Cards for Africa, a company that sponsors orphans. These orphans make beautiful welsh cards. Once the company gets these products it stocks them mainly in its canton (Cardiff) based shop and in Wales. From there the company can buy the products (Fair Do, 2011).

From the above, it is notable that the company’s supply chain is two pronged. This means it can buy directly from the makers of the products or from second tier suppliers (Chen, 2004). The company does not, however, depend on these suppliers so much. This is because they might get wearied by the fair trade requirement and closed own. Therefore, it establishes contacts with direct suppliers (producers) and customers to remain afloat (Larson, 2004).

Technology, Its Impacts and E-Commerce

Fair do has a remarkable online presence. Website provides the necessary transition for people who want to trade with the company online (Fair Do, 2011).The company as with most companies has a face book and twitter page. It has ensured that the page is interactive enough and has updated information concerning its operations (Haag, 2006).

Through these two internet applications the company keeps its customers and suppliers posted at almost no cost. It also is able to promote more involvement with fair trading: a concept the company upholds. A perfect example is the upcoming Easter holidays (Fair Do, 2011).

Fair do’s has informed its stakeholders in advance of the imminent closure during that period. This is going to happen during the wedding of prince Williams and Kate (Fair Do, 2011).This is quite important as customers are able to make gift purchases in advance. It also improves the interactive nature that it operates. The company is very particular with its customers. Its customer service is unrivalled in Wales along with its product offering (Kouvelis et al. 2006).

The company has not exactly focussed on e commerce. Experts argue it is because of the complications that it may bring. The company will have to align itself with the policy of fair trade. This is quite hard when you do not know who you are dealing with. E commerce is usually faceless. This is only possible in the upstream side of the supply chain: where only selling takes place.

It is however almost impossible on the down stream side (suppliers) because accreditation is needed (Fair Do, 2011). Prove of accreditation and the risk of counterfeits is quite possible. Although the company can immensely reduce costs associated with direct dealing, it has other pressing needs to uphold. Hence, it opts out in that area. The impact is basically on costs and the issue of missed opportunities which can present competitive supplying to the company.

Technology is crucial in the growth of current businesses. This will keep the businesses relevant even in future. The company hence, plans to have a modified e commerce application to its business and to improve internet presence. This will present the company with insurmountable numbers of customer base and opportunities for expansion (Fair Do, 2011). Therefore, although it is a company it essentially makes no profits. Most of the costs are associated with supply and logistics (Boyer, 2010).

Store Design and Location

The company’s physical location is in Cardiff in canton along 10 Llandaff Road. This is where you find the main office which is registered (Fair Do, 2011). However, the company is a federation of small businesses located in almost every part of England. These small businesses have a particular store design that they operate. This is to give fair do’s an identity both from the customers and other stakeholders (Halldorsson, 2007).

The company has a theme where its stores are painted in happy colours. This is inline with the various unrelated products that the company offers. The size of the stores is always small. This is because the type of products stocked does not occupy large amounts of space. The company has two service people inside and a cashier. A customer has space for manoeuvre inside and this is crucial in the sampling of the various commodities (Fair Do, 2011).

Products are arranged according to origin. Products from Philippines, Kenya, Egypt and Somalia are kept in different places. It is also common to arrange them according to a large area of origin. This means products from east Africa, West Africa at cetera are kept together. This makes customer shopping experience greater. The products do not have price tags except for the most expensive ones (Hines, 2004).

The colours range is determined by the products. Basically, these products come from communities who use hands to make them. The raw materials range from sand, clay, ivory remains, bone among others (Fair Do, 2011). The paintings are also quite different inline with the diverse cultures of the people.

This is what the company essentially promotes in the design of its stores. Experts say that the company does it self proud by employing the sustainable mantra (Lavassani, 2009). What they argue is that the company is in tandem with the global call for sustainable development. This clarion call which asks organizations to go green has been received, or pioneered by fair dos. It is replicated in its store design also.

Pricing and Promotion

In actual business world, this is what would largely determine the success and or failure of a business. However, this is not the main factor for operation of fair do. The company‘s main focus is on sustainable development of economies (Fair Do, 2011). It also focuses on improving the lifestyles of people in less developed countries whose products do not find their way in mainstream markets. This is despite the fact they are unique products.

The pricing of the products at fair do is hence, focussed on this. This is considering the fact that the suppliers do not come from the same geographical locations. Fair do, therefore, offers products ranging from compact discs, clothes, foods and beverages, toys among others (Misiura, 2006).

In some cases the company prices its commodities highly. This is because they are unique products very suitable for expensive gifts and prizes. Therefore, people who love unique things especially artillery, ornaments and handicrafts find solace and perfect places for shopping at fair dos.

It is quite important as it is a two pronged approach which services the less privileged people in the world. It also works for the environment. These small businesses have a particular store design that they operate. This is to give fair do’s an identity both from the customers and other stakeholders (Fair Do, 2011).

The company does not focus on making profits. The costs associated with the companies operations are staggering. This is especially true in the logistics and supply chain management. The company does not however make losses. This is offset by fair pricing (Fair Do, 2011).

The company believes in offering the best deal to both the customers and the suppliers. However, on the customer side it gets better deals by offering products at different prices. The company also invokes the human side of the customers with the message of helping the developing world (Nagurney, 2006).

Fair do’s does not promote its products in the mainstream media. It, in fact does not promote products. This is because it does not have a distinct line of products. Therefore promotions may be an act in futility. The company however promotes its goal, mission and vision. This brings in volunteers from many departments.

It also works magic in word of mouth marketing. According to experts it is more productive when a company grows through buzz marketing than any other form of promotion. The company enjoys the services of students who work in the company for free. This way they reduce the overall overhead costs associated with operations. It is also important to note that the company will enjoy so much support form the government. This is inline with the governments plan to go green (Ketchen, 2006).

Reference List

Boyer, K. (2010) Operations & Supply Chain Management for the 21st Century. Mason, OH: South-Western Cengage Learning.

Chen, I. (2004) Towards a Theory of Supply Chain Management: The Constructs and Measurements. Journal of Operations Management, 22.2: 119-150.

Fair Do. (2011) Fair Do’s Siopa Teg, Fair Do Web. Web.

Haag, S. (2006) Management Information Systems for the Information Age. Canada: McGraw Hill Ryerson.

Halldorsson, A. (2007) Complementary Theories to Supply Chain Management. Supply Chain Management: An International Journal, 12.4: 284-296.

Hines, T. (2004) Supply Chain Strategies: Customer Driven And Customer Focused. Oxford: Elsevier.

Ketchen, J. (2006) Bridging Organization Theory and Supply Chain Management: The Case of Best Value Supply Chains. Journal of Operations Management, 25.2: 573-580.

Kouvelis, P. et al. (2006) Supply Chain Management Research and Production and Operations Management. Review, Trends, and Opportunities. In: Production and Operations Management, 15. 3: 449–469.

Larson, P. (2004) Logistics versus Supply Chain Management: An International Survey. International Journal of Logistics: Research & Application, 7.1: 17-31.

Lavassani, K. (2009) Developments in Theories of Supply Chain Management: The Case of B2B Electronic Marketplace Adoption. The International Journal of Knowledge, Culture and Change Management, 9.6: 85–98.

Misiura, S. (2006) Heritage Marketing. London: Elsevier, Burlington.

Nagurney, A. (2006) Supply Chain Network Economics: Dynamics of Prices, Flows, and Profits. London: Edward Elgar Publishing.

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