Page 70 - Articles Written by JGJ EF DPS

SE’s Value Chain and Business Model shows how the company may
manipulate its inherent supply chain flaws by developing a strategy
which enables it to seek sourcing solutions after orders are placed or
order critical mass is reached (Diagram 20).

Simply Electronics Limited earns a triple profit on their activities:

Profit 1: arbitrage
Profit 2: cost or near cost purchases plus undercutting margins
discounts
Profit 3: internal cash flow manipulation (retained cash over 43 days,
as in GoPro example, before refund or goods dispatched)

Diagram 20

Examination of SE’s website shows that he overwhelming majority of its
advertised products are claimed to be in stock with a dispatch time of 3-
5 working days. If this were truly the case it would be an outstanding
control of logistics.