Week 4 Essay Example | Topics and Well Written Essays - 500 words

Week 4 - Essay Example A constraint associated with capacity management that must be managed well in order to successfully launch the new products is time. Time can become a constraint if a customer has a specified delivery date (Tutor2u, 2009). Once the company determines the official launch date of the new battery-pack and solar power models it must carefully plan an efficient strategy to ensure the product reaches its destination on time. Capacity management can help the company lower the costs of moving the merchandise through the distribution network. The shipments of merchandise most of time are send in trucks that are not completely full. The company must coordinate its launch to take advantage of the unused capacity of its shipments to corporate clients. In order for the company to optimize its logistics the firm must invest in the latest information technology. A technology that can help John Deere coordinate its delivery of its new lawnmowers are radio frequency identification tags (RFID). RFID tags give managers the capability of tracking the position of the merchandise while the items are in transit or in a warehouse. E-commerce has become an integral strategy that must be utilized by multinational firms as a channel to move merchandise. The consumer purchasing patterns have changed a lot in the 21st century. There is a portion of the population who prefers to buy online. In 2008 in the United States e-commerce generated $146 billion of online retail sales (Plunkett Research, 2009). An e-business platform provides benefits for the supply chain of an enterprise. The implementation of such a strategy to market the new green lawnmowers would lower the operating costs of the company. Sales generated through the e-business are direct sales for the company. A direct sale eliminates the profits achieved by the distributor which raises the profitability of John Deere. The electric and solar powered lawnmowers the company developed are going to be a big hit among