Sugar Essay Example | Topics and Well Written Essays - 1500 words

Sugar - Essay Example Purchasing for Sugar is not centralized. At the same time the present process of purchasing follows none of the established rules of purchasing for a chain of stores. In fact there is no standardized purchasing strategy. â€Å"Purchasing strategy includes long term agreement, product design collaboration, and seamless supply chain process between the trading partners.† (Ling Li, page 63)i. Purchasing at Sugar stores is not even scientifically decentralized as delegated purchasing at Sugar shops does not owe accountability to the management. A mixed sort of purchasing system is being followed wherein individuals take up purchasing responsibility on the basis of their experience and contacts in the market. With the result all those advantages of centralized purchasing like economies of scale and others, as discussed later part of this assignment, are not being attained. Costlier hybrid or mixed style of purchasing system is bound to shrink the turnover and profitability. Cash and Carry style of purchasing, adopted by Sugar stores, means branded apparel are not being sold at Sugar stores. Branded apparels are designed as per the prevalent market and fashion trends. In fact brands set the fashion trend in the market. There is always a scientific process involved in fabrication of branded apparels. Designers introduce styles that become craze during the coming session. These branded styles of garments are fabricated only for those business houses that care for fashion and styles. Increased sales automatically follow such brands. Charles W. Lamb and other (page 309)ii believe that â€Å"retailers love consumers’ increased acceptance of private brands.† The styles that attract sales are not available in whole sale stores from where Sugar stores are making purchases. Accordingly the purchasing approach of Sugar is rather negative. Management of Sugar is not interested in taking risks and that is why sales at such stores are a cause