Suppose that the president of a carpet manufacturing firm has asked you to look into the...

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General Management

Suppose that the president of a carpet manufacturing firm hasasked you to look into the possibility of bypassing the firm'swholesalers (who sell to carpet, department, and furniture stores)and sell direct to these stores. What caution would you voice onthis matter, and what type of information would you gather beforemaking this decision?

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This type of approach would require proper understanding of the logistics operations One of the biggest caution in this type of decision is that the company has to set up its own logistics systems as well as warehousing and inventory management which would increase the cost by many margin Company also has to    See Answer
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