Domel Ltd. wholesales a range of domestic electric appliances to stores and shops situated within roughly 200 miles of its warehouse.
business
Description
Domel Ltd. wholesales a range of domestic electric appliances to stores and shops situated within roughly 200 miles of its warehouse. These appliances are purchased in bulk from manufacturers and importers and resold at low profit margins. In maintaining its profit, Domel Ltd. relies on a rapid and high level of stock turnover. This is achieved through the ability to provide fast delivery of all orders, including those that are quite small. Distribution to customers is mostly by means of Domel’s own transport fleet, and delivery may be to various addresses in the case of some customers. Each customer has an agreed rate of discount applicable to all his purchases. Similarly, each customer’s credit limit is applied individually and is preestablished based on customer credit history. The management of Domel believes that their success depends very largely on rapid response to customers’ inquiries, on meeting a high proportion of orders, and on achieving competitive selling prices. Many customers place an order to meet a specific demand of their own and if this is not handled quickly, they soon turn to another wholesaler. The main goals of the top management are:
