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The Disintermediation of Manufacturers in the Plumbing Industry – A Case Study of G Company
The Plumbing Industry
According to the research of the Ministry of Economic Affairs, the annual value of Taiwan’s plumbing industry was over 6 billion NTD. There used to be more than 60% of world faucet supply was from Taiwan, which represented one of the symbolic industry of the Taiwan Economic Miracle. Due to insufficient information, language barrier and trading capacity, most plumbing manufacturers were Original Equipment Manufacturers(OEM)and Original Design Manufacturers(ODM). Sales order and export were relied on trading company. With the rise of worldwide trading, free market competition, and internet network, plumbing manufacturers were forced to bypass the trading company and get production order directly. This research used plumbing industry disintermediation as a starting point to understand current market, and followed by employing in-depth interview with clients to better understand the reasons and needs of choosing direct or indirect marketing channels. Then, case study was conducted to further analyze current distribution issues. Ultimately, this research provided case study companies with short-term, medium term and long-term advices in order to integrate internal production process control, increase core competencies, explore and develop new market segment, and build customer relations.
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