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A Case Study..

Lowe's provides quality products and services through its supply chain system using an input-transformation-output model with over 1,000 suppliers. It focuses on strong customer relationship management and less reliance on vendors. Lowe's also commits to maintaining customer relationships throughout the entire product lifecycle with installed sales and extended protection plans. It focuses heavily on customer relationship management because customer satisfaction is key to its success. Technology also plays a major role in Lowe's success by allowing it to sell directly to customers and engage customers through its website, mobile apps, and use of the Internet of Things. Lowe's further connects with customers through omni-channel retailing, which provides personalized shopping experiences both online and in-store.

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Alokozay Malik
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1K views4 pages

A Case Study..

Lowe's provides quality products and services through its supply chain system using an input-transformation-output model with over 1,000 suppliers. It focuses on strong customer relationship management and less reliance on vendors. Lowe's also commits to maintaining customer relationships throughout the entire product lifecycle with installed sales and extended protection plans. It focuses heavily on customer relationship management because customer satisfaction is key to its success. Technology also plays a major role in Lowe's success by allowing it to sell directly to customers and engage customers through its website, mobile apps, and use of the Internet of Things. Lowe's further connects with customers through omni-channel retailing, which provides personalized shopping experiences both online and in-store.

Uploaded by

Alokozay Malik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A case study

Lowe’s fresh approach to supply chain management

Abdul Malik Alokozai


CDI College Canada.
Introduction
Lowe’s Companies is a Fortune 500 American company that operates a chain of retail home
improvement and appliance stores in the United States, Canada, and Mexico. Lowes was founded
in 1946 in North Wilkesboro, North Carolina the chain has 1,840 stores in the United States,
Canada, and Mexico.

Question 1: How does Lowe’s provide quality product and services through its supply chain
system?
Answer: lowe’s provide both product and services to their customers, using the input-
transformation-output model (ITO).The main reason behind the success of this company is the
unique system of (ITO). The (ITO) is the center function of the supply chain that successful
companies like lowe’s use, with over thousands of suppliers. Lowe’s has created strong customer
relationship management system to sell their product and less rely on vendors

Figure. 1 input-transformation-out model


Question 2: what is lowe’s approach to product life cycle management?
Answer: A large aspect of lowe’s supply chain is its commitment to ensuring that relationships
with customers are maintained throughout the life cycle of the products that customers purchase.
The two ways lowe’s uphold the commitment are “installed sales” and the extended protection
plans and repair policy. Providing services for purchased product aver the lifetime of the product
is called “product lifecycle management” or PLM. PLM has become important from a supply
chain viewpoint as warranties and guaranties are becoming more popular. Lowe’s provide the
post sales services to the customers that makes them different.
FIGURE 2: PRODUCT LIFECYCLE MANAGEMENT

Question 3: why does lowe’s focus so strongly on CRM?


For lowe’s it is need of the day to satisfy their customers. Lowe’s believe that customer’s
satisfaction and their need fulfilment is the only key behind their success. Lowe’s has adopted an
innovative approach to keep their customers in touch and satisfied throughout the PLM. Strong
CRM is the only strategy to make customers loyal and satisfy, they believe.
Question 4: What is lowe’s view on technology in its process.
Technology has great impact on lowe’s success. The status and positions lowe’s got, is just because
of the best use of technology. Lowe’s has introduced the best way to sell the product directly to
the customers by eliminating the mid man. Lowe’s has targeted customers through their website,
mobile apps since the online retailing has become common in use. This is where lowe’s sets itself
apart in the hardware markets with its ability to engage technology and internet of things in its
operations.

Question 5: How does omni channel retailing further connect Lowe’s to the customers?
Lowe’s has also competed its rivals in the very best way by utilizing the features of omni-channel.
It has given the user an access to Lowe’s store by using internet. It has also excluded the need of
mid man for customers. Beside all these features omni-channel has provided a matchless structure
called “myLowes feature” which allow customers to be more personalized. This feature let the
customers to create imaginary home improvement projects in the kitchen and bathroom. Customers
are able to move the product around in this virtual rooms and see how they interact together.
Customers wear a virtual realty headsets and select items from library of Lowe’s product and make
their mind how will it look like in real environment of their homes. This feature has proved to be
extremely successful in attracting more customers to Lowes.

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