Tag Archive: margin

Are Your Ready for a Systems Transformation?

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The topic of Systems Transformation seems to be arising more frequently lately.  How do you know if it is time to consider a systems transformation? Let’s start by defining a systems transformation.  In essence, a systems transformation is an upgrade to the way you perform business – inclusive of your people (allocation of resources, skillsets, etc.), processes, systems and information flows/ collaboration partners. Although there is never a bad time in terms of elevating your business performance, the investment and disruption might not be ‘worth it’.   In other words, does the return on investment make it the ‘right’ time? Here are questions to ponder…
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Amazon Fears Driving Supplier Price Concessions at Costco

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Amazon continues to wreak havoc on supply chains worldwide.  A client that does not compete directly with Amazon forwarded an article on Costco’s new price pressures on suppliers in response to Amazon concerns.  She said that these types of industry moves were creating disruption and price pressure in her industry, even though unrelated to consumer products.  Thus, we better pay attention!   According to an analyst at Stifel Nicolaus, Costco’s remarks were the first time a retailer in their coverage has explicitly admitted exacting price concessions from suppliers. That is a BIG deal!  Costco’s CFO has said the brands need…
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