Published by:
Harvard Business Publishing
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Abstract
Your company''s products are excellent, they''re in demand, and the business opportunity is too good to pass up. You just don''t have any big customers - your product sells to thousands of independent retailers. It is often difficult for any one player to justify the investment needed to build and maintain a national distribution network in a fragmented market. But a group of players with a large combined volume can create economies of scale by using a shared industry platform - a third-party vendor that aggregates the needs of multiple companies to provide more efficient supply chain-related services. This article describes the details and benefits.
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Abstract
Your company''s products are excellent, they''re in demand, and the business opportunity is too good to pass up. You just don''t have any big customers - your product sells to thousands of independent retailers. It is often difficult for any one player to justify the investment needed to build and maintain a national distribution network in a fragmented market. But a group of players with a large combined volume can create economies of scale by using a shared industry platform - a third-party vendor that aggregates the needs of multiple companies to provide more efficient supply chain-related services. This article describes the details and benefits.