What Are You Doing About the CRaP Products in Your Business?

What Are You Doing About the CRaP Products in Your Business? (10 Points)

Instructions

Don't use plagiarized sources. Get Your Custom Essay on
What Are You Doing About the CRaP Products in Your Business?
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!
Order Essay

Read the provided article. Complete this assignment

A 250-word minimum is required for this assignment. Number your responses according to the assigned questions. Do not retype the questions.

Questions

How can the use of technology improve the margins for products CRaP?
Explain the strategies that companies can implement to improve the profitability of low performing products.
How can businesses improve the performance of omni channels when shipping products?

Article

What Are You Doing About the CRaP Products in Your Business?

The key is to use logistics tech­nology that shapes customers’ delivery options to provide superior service but at a lower cost.

In a recent story, the Wall Street Journal wrote about Amazon’s
(Links to an external site.)
efforts to address unprofitable products. The company has a great name for those items that it deems are not profitable: CRaP, or “Can’t Realize a Profit.”
(Links to an external site.)
Every company has products with low, no or negative margins. They are typically “low dollar density” – that is – they don’t generate enough revenue relative to the cost to deliver them to customers.

The article mentions a number of ways to try to address the problem, such as changing packaging and quantity and making it someone else’s problem (read supplier).

Every company should have a CRaP identification program. Logistics technology can help address profit margin-challenged products because the cost driver in many cases is the delivery. The key is to use logistics technology that shapes customers’ delivery options to provide superior service but at a lower cost.

Here are three delivery-shaping strategies to improve profitability.

Your customers aren’t all the same; stratify your delivery options to drive profitability and let them self-select. There is no reason to have every product, especially the unprofitable ones, receive the same service level that your money makers do. It is possible to incentivize customers to take more profitable delivery options and increase your margins. Amazon is already doing this. Some customers will pay for the privilege of fast and precise deliveries, while others want to the cheapest way possible and will take a slower delivery. As long as customers have choices, they will be happy to self-select, and using dynamic booking during the buying process will allow your company to tailor delivery options based upon the customer and the products they are buying.
Steer customers to more profitable delivery options in the buying process. It is possible to give customers better delivery options and have them be more profitable for your company. For example, not all next-day, two-hour windows have the same delivery cost. So, why not give the customer the two-hour option with the lowest cost to you? If you already know that you will be in the customer’s area from 2 p.m. to 4 p.m., why not offer the 4 p.m. delivery window instead of the one at 10 a.m. when your trucks won’t be in the same area? Customers are more willing to take the first option you provide as they place a relatively higher value on time-definite deliveries as opposed to speed, so start with the options that make you the most money. Again, dynamic booking provides the ability to score delivery options based upon existing orders and give customers options that drive up delivery density which, in turn, drives down costs.
Take an omnichannel approach to delivery and consolidate customer orders across your delivery channels. Unfortunately, too many companies have pre-defined and segmented delivery options based upon product size. They do not consolidate customers’ orders to drive down costs and improve service. For example, if a customer purchased a large item for delivery next Tuesday by a two-person crew and a small item over the weekend that would normally go by parcel, why not consolidate those deliveries? It’s easy to understand that the delivery costs for the small item would essentially be eliminated. By consolidating orders using a single multi-modal solution and evaluating delivery options for new orders based upon existing orders, companies can give customers delivery choices that drive down costs and still provide high-service levels.

All companies should take Amazon’s CRaP approach to heart to identify and address products that are profit killers. Logistics and logistics technology can play a prominent role in helping to drive costs down and margins up. Companies that proactively use logistics strategies and technologies that shape customer delivery behavior will be in the best position to eliminate CRaP products from their portfolio.

Instructions

Read the provided article. Complete this assignment with your project teams. Submit one assignment per group. Include the names of team members when you submit your assignment. Group leaders assess the performance of your team members by indicating participated (P) and did not participate (DNP) next each of team member names. If you do not contribute, you will not receive credit for this assignment.

A 250-word minimum is required for this assignment. Number your responses according to the assigned questions. Do not retype the questions.

Due Date

2/22/2021, 11:59 PM

Questions

How can the use of technology improve the margins for products CRaP?
Explain the strategies that companies can implement to improve the profitability of low performing products.
How can businesses improve the performance of omni channels when shipping products?

Homework Ocean
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.