According to the case of supply chain alliance between P&G and Wal-Mart, answer the questions

1. Since the 1980s, the distribution industry in the United States has ushered in a huge change. The U.S. retail industry is not only a huge development in scale, but also in the construction and use of information technology has made a qualitative leap, which is manifested in the POS, EOS and other modern retail management systems began to enter the retail stores, bringing about radical changes in retail operations, retail enterprises not only a huge improvement in business performance, but also because they accurately and timely grasp of the key information on the market and customer needs. As a result, retail enterprises have formed a complete distribution information network, which gives them an information advantage over commodity suppliers. Therefore, the dominant power in the whole distribution chain has been transferred from the producers to the retailers. As a result, by the mid-1980s, the conflicts and contradictions between producers and retailers had intensified, especially between large-scale producers supplying national brands and large-scale retail chains with strong sales capacity and commodity regulation system, which undoubtedly brought about turbulence and instability to the whole socio-economics and the distribution industry, and also weakened to a certain extent the U.S. enterprise's Competitiveness. At the same time, after the 1980s, the U.S. market faced a strong challenge from foreign enterprises, retailing enterprises, relying solely on their own strength and scale, are still difficult to cope with this kind of international competition, therefore, there is also an urgent need for production and marketing can be closely integrated with each other to complement each other and promote each other, to form a new competitive advantage in order to cope with the increasingly adverse market environment. In such a background, in the mid-1980s, the United States large-scale producer Procter & Gamble and the United States No. 1 retailer Wal-Mart formed a strategic alliance, began to explore a new type of production and marketing partnership, in practice, to the direction of supply chain management.

2.1)Performance generated by Wal-Mart

1) Reduction of transaction costs.

2)In-stock cost and risk compression.

3)Reduction in overhead costs due to paperless trade.

4) Decrease in labor costs such as staff organization and reallocation.

5) Reduction of multi-link distribution costs.

(2) The performance of Procter & Gamble's production and marketing alliance

1)The reduction of transaction costs.

2) With the MMI system, it is easy to make and realize the marketing plan.

3)Efforts to cut down on in-stock costs and risks are made possible by the automated ordering system.

4) The implementation of the strategy of production and marketing alliance increases the productivity of factories, builds a flexible production system, reduces the dispatch cost of raw materials, and reduces the opportunity loss due to price fluctuations.

5) Saving distribution costs by eliminating intermediate distribution links.

The third has been taught before, and I'm too lazy to go through the book. The first two you shrink to write.