Major challenges the company faced
DAMEN POWEr oeveroyouthfuloeveroweeping
4.Diverse product and regulatory requirements Asia as a market is enormously complex given its diverse languages, cultures, currencies, government regulations, taxes, tariffs, and level of economic development, to name just a few elements. In addition to individual countries’ differences, significant variations also existed within each country.
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In this case, we will focus on the analysis of the first 9 years of IDS’s business strategy, respectively from 1999 to 2001, 2002 to 2004, and 2005 to 2007. Here is the simple introduction of the strategy: (details below)
Three-Year Strategic Plans from 1999 to 2001 In the first three-year strategic plan, the challenges were to manage change and create a new culture. One of the first priorities for IDS was to break down country-based structures and reorganize as a regional company with three business streams and key support functions across Asia. The second priority was for IDS to invest heavily in technology
C.2005-2007: Rewarded in the capital market.
Major challenges the company faced
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ck of data transparency Essentially, every part of the distribution system was opaque and each party in the system worked in their own silo to maximize individual profits. These dynamics created enormous system inefficiencies
Major strategies and approaches employed and implemented
1.Reorganization The strategic priority for the company was to develop the core pieces: logistics, distribution and manufacturing.
2.Rise of the modern trade Modern trade channels, such as hypermarkets and category killer retail chains, were becoming increasingly popular amongst Asian consumers. Consumers liked the wide selection, latest products, and
5.Non-dynamic pricing model Brand owners either demanded a significantly lower service fee or would just not use the distributor at all. The consequences of the outdated, supply-driven supply chain of Asia were manifold and debilitating for retailers, brand owners and distributors. These costs of ‘uncoordination’ stemmed from huge inventories, high costs of services, and process inefficiencies.
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Major strategies
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Major success factors
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Major strategies and approaches employed and implemented
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Background：The complexity of the Asia distribution landscape and the rise of the consumer market in Asia inspired the creation of Integrated Distribution Services Group (IDS).
2.Technology Investment In addition to reorganization, senior management at IDS also took another important strategic decision to invest heavily in technology, initially with a best-in-class warehouse management system (WMS) and subsequently a software application for distribution and financial reporting called Oracle E-1.
INTEGRATED DISTRIBUTION SERVICES GROUP (IDS)
REDEFININ THE ASIA DISTRIBUTION LANDSCAPE G
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Introducti on
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Literature review
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Major challenges
the company
B.2002-2004: IDS developed a new business model based on the concept of a menu of services. (1) Logistics – “ship, store, deliver” (2) Distribution (Sales & Marketing) − “promote, sell, bill, collect” (3) Manufacturing – “make, test, package”
3.Multi-tiered logistics system In many parts of Asia, the physical infrastructure limitations meant chaos in dealing with multiple logistics providers. The inconsistency of quality amongst these logistics providers led to damaged products along the way, or severe delays in delivery time due to bad planning and coordination.
A.1999-2001： One of the first priorities for IDS was to break down country-based structures and reorganize as a regional company with three business streams and key support functions across Asia. By far the most important outcome of this change was establishing logistics as a leading core business of the IDS Group. (1) Reorganization (2) Technology Investment
Key field：The mission of IDS was to provide brand owners and retailers with a customized end-to-end supply chain management solution: from manufacturing all the way through to delivery of finished goods to retail stores.