Background of the case
Maersk approach
Strive to create long term value
Sustainability strategy
Health and safety
Climate change and environment
Responsible business practice
Social responsibility
Logistics
Total Quality Management
Improve the quality of products and processes
Meet customer expectations, improve customer experience
Six Sigma
customer-centricity
Use of six sigma reduces
Defects, variation, errors in the ordering processes, inventory record accuracy
Inventory management
Drop-shipment
Advantages to Retailers:
No inventory cost
No shipping cost and hassle
Refund rate 0.25%, profits about 10 million dollars per year. This is the result of the world's most largest internet bookstore, amazon.com, which opened in 1994.
During the 1990s when internet technology began to spread through the public, Amazon.com’s CEO, Jeffry P. Bezos, realized that internet users were increasing about 2400% a year. So he decided to start a business based on Internet. H
▪ To penetrate into DRAM market
▪ Aggressive Investment and enduring negative profit margin
▪ 64K DRAM , 256K DRAM, 4Mbit DRAM
▪ Investing in technology development for manufacturing efficiency
▪ Technological development increasing wafer size
→ more chip cutting available at the same time
This idea can be applied to logistics as well. In the past, logistic cost has been defined in purely monetary terms. However, as not only in the EU but also in the USA and other countries became more and more aware of environmental problems ,for instance because of climate change, air pollution, noise and accidents, environmental considerations has been taken in logistics kfield. This is how Gree