Supply Chain

Radioshack does not manufacture any product they locate suppliers in which the goods are preassembled. Radioshack locates the supplier with the lowest cost, places multiple orders to handle current demand and lead times. The orders are then shipped to the company warehouses. Corporate then uses data to decide the quantity and stores to ship to. Stores receive the merchandise and process begins again. To help maintain a successful and profitable retail location is the management of the supply chain. Radioshack must be on top of its game in this category because they have over 5000 stores to supply merchandise too. To ensure that they handle inventory and the transportation of it in the most efficient and cost effective manner Radioshack partnered with Manugistsics Group Inc. which monitors daily carrier performance and determines the most appropriate transportation method considering both service and cost. Retek(Oracle owned) which enables Corporate to manage store-level perpetual inventory and accurate in-stock for over 15,000 items across its 7,200 stores, and Celerant Consulting which analyzes overall business operations and creates customized programs to fill the specific needs. All three of these companies worked with Hyperion within RadioShack to ensure accurate, detailed and cost effective solutions to better manage the supply chain.

Since RadioShack has partnered with these three companies they were able to slash operating costs by $48 million such as reduced cost of goods, improved vendor terms and better logistics practive. Inventories were reduced by $200 million. Inventory turner increased from 2.1 to 2.6 times per year.

Radioshack is undergoing a major turnaround and have begun to make many of the needed adjustments. They have a much better focus on the 4 P's( Price, Product, Place, Promotion), the main key is not that they focus is better but they have the support and logistics in place to help them succeed.