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Colinx

In: Business and Management

Submitted By UlakyK
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[pic] between its manufacturers and their distributors, and manufacturers and freight carriers as well. When many companies are supporting basic e-commerce Web services to the same group of distributors or carriers, a common gateway reduces technical complexity and simplifies life for users. Services are offered to manufacturers who undergo a formal application process, pay a membership fee, and make a commitment to use CoLinx services to a substantial extent in both e-commerce and logistics. Members have access to any or all services offered by the company and are assessed fees based on proprietary cost-sharing methodology. To be clear, CoLinx is a different kind of company that is hard to comprehend. CoLinx is not an exchange or marketplace; does not own, plan release or insure any inventory; and does no sell directly to distributors or other customers – only the manufacturers do. Manufacturer-members of CoLinx just indicate how many bin locations or pallet locations they want and provide instructions to CoLinx as to what needs to move and when. The company does not operate as a profit center, but all benefits accrued by the company are directly passed back to the members in the form of reduced costs. The company does not promote itself to try to build a brand image. The company’s only mission is to “be the best choice” for the member manufacturers it serves and the employees of CoLinx.

CASE QUESITIONS 1. Describe the elements of the value proposition for the manufacturer-members of CoLinx. What would be the elements of the value proposition for the distributors of products that are shipped form CoLinx? 2. What are the major sources of savings for manufacturer-members of CoLinx? 3. What are the keys to long-term sustainability of a relationship such as…...

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