Welcome Readers, This is Aswath A C from Amrita School of Business.
After the Second world war, Toys R Us Started as the store specialized in baby goods, Toys R us have grown to become a giant supermarket for toys in America. Japan restarted its economy after losing the world war 2, started producing inexpensive toys which were procured bulk by Toys R Us. It sold almost 18000 variety of toys with dominating 25% of world's toy market with almost 1450 locations across the world. But it failed due to the improper use of technology and its resistance to change.
The supply chain lessons from the failure of Toys R Us are
1. Rapid Order Fulfillment - The customers expect the firm to deliver its product as early as possible. So, the firm should meet the requirement of the customer in order to be in the game.
2. Distribution Network Design - Outdated technologies and Inadequate facilities increases the costs in the supply chain. A firm can implement direct shipment rather doing an hub-based design. The stocking locations are also a very important factor in the order fulfillment for the customer.
3. Focusing Customer Experience - The ability to customize the product, repair the existing product by an organization through its retail outlet with the experts will improve the customer experience, will eventually increase the sales.
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