Q.11 Using your chosen e-commerce company, analyse their strategy for management of the upstream and downstream supply chain.
Concepts that should be included are as follows:

• Push vs pull supply models
• Vertical integration vs disintegration vs virtual integration
• Partnership management and value networks
• Procurement and fulfilment strategies

Schuh is a downstream organisation from the organisation to the customer.

Pull Vs Push

The Push vs Pull models are important to a company as it is their main system that is to be followed if they are to have a well stocked successful shop.

The pull chain runs from the supplier, in this case a shoe supplier, to the manufacturer leading to the distributor being schuh and then to the customer. The aim of this chain is to optimise the production process for effective cost and efficiency. This chain is crucial as without any of the links the chain could collapse.

Schuh has many suppliers within their chain as they sell a wide variety of shoes from a number of different brands.

The Push chain runs from the customer to the retailer, then the distributor to the manufacturer and then to the supplier. The aim of this chain is to enhance the product and service quality. This is benefiting the customers in the future to enable the chain to make improvements.

A customer might have bought a faulty pair of shoes, after a week wearing them the sole had worn through, this information would run through the chain to the manufacturer and then they could make the improvements so that they don’t face that problem again.

Vertical Integration vs disintegration vs virtual integration

Schuh is a disintegrated company. This means that they have a network of suppliers as they sell a number of different branded shoes both in store and online. This means that they can cut the cost to a value that suits as well as being able to focus on the core capabilities for the chain to be successful.

 Partnership management and Value networks

Value = (Benefit of each value chain activity – it costs) + (Benefit of each interface between VC activities – its cost)

Schuh have a number of shareholders, this is to enable to free up more money for a number of reasons including setting up another store or for the day to day running and the bills of the stores

Procurement and fulfillment strategies

The company aims to fulfil the customers order and deliver the item required efficiently. Schuh have a system where they can see what the best selling products are and are prepared to meet customer demand. They are able to order a larger number of the popular shoes to ensure that customer’s orders are fulfilled.