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H.E. Butt Grocery Company Background COMPANY ROLE REDEFINITION

H.E. Butt Grocery Company Background COMPANY ROLE REDEFINITION. 1996 Scanner. Decision rights shift Asset responsibility shifts Costs squeezed out of value chain Delivery process changes IT permeates every part of chain. 1989 FAX Orders.

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H.E. Butt Grocery Company Background COMPANY ROLE REDEFINITION

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  1. H.E. Butt Grocery Company BackgroundCOMPANY ROLE REDEFINITION 1996 Scanner • Decision rights shift • Asset responsibility shifts • Costs squeezed out of value chain • Delivery process changes • IT permeates every part of chain 1989 FAX Orders Customer HEB stores HEB depots Suppliers HEB.com 2000 1990 Scanner adM@rt bankruptcy

  2. H.E. Butt Grocery Company Events • 1989 - Traditional firm:inventory, 11.4 inventory • 1994 - Supply fulfillment decision rights supplier, 38.6 inventory • 1995-’97 – ConsignmentNear “0” • 2000 - HEB.com, December 1 Austin rollout, money • 2001 - Where HEB.com??

  3. Illustrative Value-Chain Decomposition • Supplier RoleDecision rights assets & costs Auctions - independent, supplier consortium, customer consortium • Inbound Logistics-Li & Fung LIMITED Cost & Scope outsourced Globally • Outbound Logistics- Amazon/Barnes & Noble Outlet Clicks & Bricks

  4. Illustrative Value-ChainDecomposition – (continued) • Infrastructure – Acct/HR- Outsource to provider a`la • One company original Dow • IT disturbs costs and thus, role

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