8/12/2019 Audio Duplication System
1/10
Group-6
Abhimanyu MiglaniAnkit Tibra
Garima Pant
Mehar Ahluwalia
Siraj Raja
8/12/2019 Audio Duplication System
2/10
Audio Duplication Services Compact disc & Cassette Duplication & Distribution
company
B2B company. Large record companies constitute its customer base
One of 6 big players in the market
Has about 20% of the $5 billion market
Boasts of big client names Wal-mart, Kmart ,BestBuy & Circuit City
8/12/2019 Audio Duplication System
3/10
Current IssuesRecord Companies have asked ADS to help with thelogistics of VMI agreement
Retailers want ADS to ship directly to individual stores-Higher expenses for ADS
Dealing with increasing shipping cost
Increasing competition from online audio distributiontechnologies
8/12/2019 Audio Duplication System
4/10
VMI Business model in which buyer provides supplier with
certain information
Supplier take full responsibility of maintaining certaininventory level at buyers location
Goal of VMI is to eliminate retailer oversight onspecific orders
Eg- Wal-Mart and P & G association
8/12/2019 Audio Duplication System
5/10
Record companies will decide amount and time of eachdelivery
Record companies have to be provided with
continuously updated POS data from each store
Record companies will own the inventory until it is sold
ADS will help with the logistics of VMI agreement
8/12/2019 Audio Duplication System
6/10
Why are ADSs customers moving
towards VMI agreements? They want to reduce inventory holding costs and
expenses related to managing inventory
Reduced bullwhip effect
Reduced forecast uncertainties & improve overall
service level
Quick Response time
8/12/2019 Audio Duplication System
7/10
How will this impact ADSs business?
Transportation
Maintenance
Inventory Holding
Enhanced
Costs
Strong incentives
Good Buyer-SupplierRelationship
Upgraded information system
OtherEffects
8/12/2019 Audio Duplication System
8/10
How can ADS take advantage of
this?ADS can enhance their distribution & inventory
management capabilities to prepare itself towardsgeneral trend of VMI in industry
Strong customer relationship
Increased proximity with the customers will lead tobetter understanding of market demand
Increased market share
8/12/2019 Audio Duplication System
9/10
How should ADS manage logistics?
ADS should hire Third-party logistics for management
because Logistics is not its core competency
Its responsibilities have enhanced
It will be able to focus on emerging trends and gain
competitive advantage Cost saving- Transportation, Technological &
Inventory costs
8/12/2019 Audio Duplication System
10/10
Why are large retailers moving
towards direct shipment model?
Reduced Complexity
Reduced Costs
Time-Saving