Distribution Proposal Paper for

Supplies Station Inc.

A. Company Profile
Supplies Station, Inc. is a one-stop-shop for various types of office, school supplies
and stationery. The company provides and give high quality products to their customers.
SM Stationery a subsidiary of Supplies Station Inc. has a wide selection of all the
“write” stuff a student need to be on top of his class-quiz pads, writing pads, and other
paper products; pens, pencils, markers and highlighters; as well as budget packs of
notebooks. And kids will find it easy to organize their school stuff with folders, envelopes
and binders.
It has 250 branches located in SM Department Stores, SM Hypermarkets, SM
Supermarkets and Savemore nationwide and still growing.
It is a member of the SM Group of Companies formed with the aim of being the
foremost stationery and office supplies store in the country that is world class. We train
and motivate our employees to become professionals in their fields of work and strengthen
their moral values as virtuous citizens of this nation.

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MAR186 Mrs. Arlene San Pablo
 Distribution Proposal Paper for
Supplies Station Inc.

B. Distribution Channel Structure

Supplier 1 Supplier 2 Supplier 3

Sterling Faber Starnotes

Castell

Company
Supplies Station, Inc.

Retailers

SM SM SM SM
Stationery in Stationery in Stationery in Stationery in
SM Moa SM Manila SM North SM Marikina

SM SM SM
Stationery in Stationery in Stationery in
SM Fairview SM Makati SM Megamall

End users

C. Situational Analysis
Supplies Station Inc. has a lot of suppliers and some of them are Sterling Paper
Enterprise Inc., Faber and Starnotes. These suppliers manufacture school supplies such as
papers, notebooks, ballpens and etc. that are mostly needed in schools and offices. Once
finished products are delivered to Supplies Stations Inc. they will transfer it to their
warehouse. SM Stationery which is their retailer is a subsidiary of Supplies Station Inc.
These stationery are located inside the Department stores of the SM Supermalls. If the
products in the SM Stationery are out of stock, the regular employee or the stockman will
have a list of the items. If there’s no stock of products in the storage they will get the

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 Distribution Proposal Paper for
Supplies Station Inc.
products to their main warehouse. And still, if there’s no stock in the main warehouse the
manager will get the products in the Supplies Station Inc. It takes 3 days to 1 week before
the product to be delivered, depends on what and how many products are needed. And once
the products has been delivered the stockman from the warehouse or if the stockman is not
around the regular employee will do.

SWOT ANALYSIS

Strength
Strong management – the company
assembled a team/employees embraces
different disciplines with expertise in all
areas of the business.
Weakness
The company doesn’t have their own
physical store unlike other companies. And
because of this, it will lead as their
disadvantage.

Opportunities
Can improved the products by
pulling ideas from the customers. Because
the trends, the company can come up
with more innovated products that can
catch the attention of the consumers.
Threats
Competitors are the biggest threat
of the company because they have their own
own physical stores wherein some of their
located near the schools and offices unlike
SSI wherein there stores located only inside
the SM Department Stores.

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MAR186 Mrs. Arlene San Pablo
 Distribution Proposal Paper for
Supplies Station Inc.

SOCIO - CULTURAL AND ENVIRONMENTAL ANALYSIS

SOCIO CULTURAL

Population Growth of Students in the

Philippines
30,000,000

25,000,000
NUMBER OF STUDENTS

20,000,000

15,000,000

10,000,000

5,000,000

0
2017 2018 2019

According to Philstar as of 2018 27.7 million students are enrolled in public and
private institutions across the country, the highest in history, according to Department of
Education.
Meanwhile in 2019 the number of students had dropped to 27.2 million.
This situation can majorly affect the Supplies Station Inc. because they will lose a
lot of consumers. And if this situation continues the sales and revenue of Supplies Station
Inc. will go down or descend.

Environmental
According to Philippine Atmospheric Geophysical and Astronomical Services
Administration (PAGASA) climate change in the Philippines is happening now. Evidences
being seen support the fact that the change cannot simply be explained by natural variation.
Wood pulp provides the most important raw material for paper manufacturing, this
translates to the importance of trees in the paper industry. Trees from which paper is made
are either softwood or hardwood, with softwood coniferous trees forming about 85% of the
trees whose wood pulp is vital for papers.
The Philippines has a climate change that is changing in any moment. Sometimes
there are unexpected events that we cannot predict when will it happen. And it really
affects Supplies Station Inc. because this company works by distributing or delivering their
products to their retailers. There are times that because of the heavy rain, floods and etc.

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MAR186 Mrs. Arlene San Pablo
 Distribution Proposal Paper for
Supplies Station Inc.
some deliveries are canceled or delayed. Supplies Station Inc. products are usually papers
that is made from trees. The natural resources really affects the supplies and inventories of
the said company therefore, decreasing in the natural resources is also decreasing in
production of the company.

D. Identification of Problem/s
The major problem of Supplies Station Inc. is operation inefficiency due to some
reasons.
1. Lack of Manpower
The lack of regular employees/workers has a big effect in terms of everyday
operation in the store because sometimes they are being pressured and can’t focus
to assist all the orders coming from their retailers.
2. Clustering that causes delay

The Supplies Station Inc. form of delivery is through clustering. Truckers

are the ones who will deliver the product from one mall to another mall which
causes delay of delivering the products. This form of delivery can really cause delay
because they don’t even know when the products will be delivered to them or
whoever comes first.

E. Alternative Courses of Action

Lack of manpower

1. The best thing to do is to add/hire experienced and motivated employees.

2. The company should train all the existing employees because if they are
being trained well, all the employees can be more knowledgeable in all
aspects. Also make them feel valued. If the employees accomplished
something whether it is a big or small thing appreciate them. And don’t
forget to show some gratitude. Because it will make them motivated.
3. Cut down expenses.

Clustering that causes delay

1. Improved the management method. Managers should create a plan that

includes all the required elements to fulfill the delivery on time.
2. Deploy more trucks or delivery vehicles to improve the deliveries to their
customers/retailers.
3. Always give attention to the requirements and orders to lessen and avoid
the miscommunication within the customers and also checklist of time and
date of the deliveries.

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MAR186 Mrs. Arlene San Pablo
 Distribution Proposal Paper for
Supplies Station Inc.

F. Recommendations

The researchers would like to contribute to the issue by recommending these best
solutions.
Regarding the problem with the lack of manpower, the researchers decided to add
or hire experienced and motivated employees. Once there are additional employees in the
company all the works will be done on time. When the company hires employees who will
push you to work hard it will lead to increased success in the company. Hiring experienced
and motivated employees is a good thing because this kind of employees were very
knowledgeable and flexible. And if they employ this kind of employees they can execute
well their operations.
And lastly, with regards to the problem clustering that causes delay, the researchers
will recommend to the company to always pay attention to the requirements and orders to
lessen the miscommunication within the customers and also the checklist of time and date
of the deliveries. Having this kind of solution is really important when doing a delivery
because it is one of the things that the company must focus on to avoid the delay. Also, it
is considered as the first communication in the company and customer, because when the
company is wrong in getting the orders and requirements it will cause problems,
misunderstanding and the reputation of the company will be ruined. Giving to the customer
what is needed fulfills their satisfaction and trust for the company and it may affect a lot
from its staff, members to its upper management. Delay of orders will lead them to be
untrustworthy to their customers because time really matters for them. And requirements
must be organized and orders must be always updated so it will lessen and avoid the delay
and no extra time will be consumed.

G. Will it Work?
Yes, it will work. Because the researchers chose and provide the best solution to
each problem. Also the company should embrace and welcome all the possibilities and
opportunities.

H. Needed Resources
The needed resource is Manpower. Manpower is defined as the total of number of
individuals who are employed in a company for a particular assignment or work. It is very
important to the company because it is the heart of the business. Everything in the company
will not move or will not cycle without its manpower. Having good communication skills
is very important because it allows companies to be more productive and operate

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 Distribution Proposal Paper for
Supplies Station Inc.
effectively. Manpower can make a change or big impact to the company. Without this kind
of resource, the business will not grow or succeed.

I. Conclusion
In conclusion, the researchers found out that Supplies Station Inc. has it’s own
weaknesses and strengths. And in order to solve all the problems, there researchers came
up to different ideas that will surely fit as the solution to those problems. The researchers
use the weakness of the company as their strength by developing and foster their capability
in terms of production and by giving the customer the right assistance that will establish a
good customer relationship.
And the researchers look forward to see the company which is Supplies Station
Inc. in a bigger and wide range of service to offer.
J. Photo Document

K. Reference
Benico, M. (2019, September 6). Interview
Mateo, J. (2018, May 31). Student population soars to ‘historic’ 27.7 M. Retrieved from
https://www.philstar.com/other-sections/education-and-home/2018/05/31/1820117/student-
population-soars-historic-277-m
Santos, K.C (2019, September 6). Interview
Tomacruz, S. (2019, June 3). 27.2 million students troop to schools nationwide. Retrieved
from https://www.rappler.com/nation/232103-students-troop-opening-classes-philippines-
june-3-2019
Wanza, S.N (2018, April 13). What Kind of Tree Does Paper Come From?. Retrieved from
https://www.worldatlas.com/articles/what-kind-of-tree-does-paper-come-
from.html?fbclid=IwAR0iuafVIgc_8N2CPATW8UtXw-wdRnM-8hKJ7-30yK-jp5JAbi_JsM2yIAs
http://bagong.pagasa.dost.gov.ph/information/climate-change-in-the-
philippines?fbclid=IwAR1ClY6PeWxuVMqPi8x6TAuzXI5R6LJZna7PRLeIBBgqWMDWxxo_cuGDnRk

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