Value Chain Concept

dollar bill global has taken many stairs to deliver appraise to Its customers. The dollar General stocks compete on the ground of wash room with highly price sensitive consumers. The chain also strives for chasteness with both 10 basic-needs core SKIS categories and and even dollar price points. Simplicity, price, and convenience ar of high value to a Dollar General consumer. Dollar General practices a low cost business model and from each one step the company makes contributes to he value delivered to the customer.Before major transformations in the detain two decades, Dollar General stores had followed a pack-away strategy to store completely unsold seasonal merchandise for the following year. Since most stores only consisted of close to 6,900 square feet, small stick out rooms piled up quickly with origin causing overflow in some stores. Focus of managers was on how to slide by the rooms organized with Irrelevant product rather than operational activities that touc h staff and the customers. Managers minds ere also clouded with how to get the seasonal SKU Into the hands of the customers.Dollar General was commensurate to evaluate this strategy and notice that the focus on the back up rooms and no room for extra Inventory could erode the value the customer receives from shopping in Dollar General. Dollar store could potentially lose space for its core category products that initially attract the consumers. In the video Keeping the Supply Chain Moving, a shoe store is featured in which the layout also suffered from a tiny back room. KEFIR) The owner was often un qualified to provide certain shoe styles to her customers due to history pile up in her back room.Value is lost. In recent age Dollar General put the consumer value In front of them and do structural changes that addressed the legacy Issues (Kaufman 8). These changes were accompanied with the decision to eliminate the pack-away policy. This enabled Dollar Generals to provide freshe r and more relevant merchandise. The remodeling of the strategy also contributed to durability of the District Managers-They are no anger elbows deep in back room inventory with the store managers digging up Skis.Now, District Managers are now able to increase in-store training and improve labor provision by simply avoiding the back room problem. Dollar General was able to protect the core SKIS value that it delivers to its consumers. By evaluating its back room policies and activities, it was able to identify the value lost with decrease in manager/employee productivity and potential to lose core SKU storage space.