Axon Company Demand Analysis

Factors driving the need for the category

Various factors exist that lead to the need for the category under consideration. Thus, the factor amounts to the reason why the organization must have the category in place. Primarily, the requirements revolve around the needs of the end customers. The end customers require the goods to be right at their disposal as and when they need them. There are various aspects that come with having the products at their disposal and having the ability to use them.

Quality

There is a need to provide customers with the right quality products as they need them. Many of the customers give the details that they expect their products to have as they are delivered to them. It is, therefore, the role of the organization to spend on demanding a high level of raw materials quality so as to transfer the same to the end consumers. Normally, quality goes hand in hand with the costs. It is for this reason that the company spends more and more each year to ensure that the quality level is updated. The company’s records indicate that the plastic products come into the organization in their finished shape. This means that the quality of the final product is defined at the source, which is in the suppliers’ premises. Therefore, Axon spends as much as possible on the suppliers to ensure that the materials brought in match the quality demanded by the customers. From the graph, it is seen that Axon spends more on Trocha than any other supplier. This is highly related to the quality of Trocha’s work. In addition, Axon spends the least amount on Airspeed Company, being a new supplier. The reason for the limited spending is that Axon isn’t sure at first time if the quality offered by Airspeed meets the demanded level (Axon n.p). The analysis indicates that Axon spends more money as it gets to interact more with the supplier. However, the trend may not be true in all cases as the spending on a supplier reduces upon the delivery of low-quality products.

Volume

Axon deals with many customers from time to time. The number of customers served by Axon has increased with time. In the same way, Axon has to identify suitable sources of raw materials to ensure that the demand of the customers is met. As the demand from the downstream customers increases, the company looks for new suppliers, such as Airspeed. Also, the company spends more on the existing suppliers. In comparison, the company spent more on the suppliers under the category under consideration in 2017 than in 2016 (Hatting n.p). This is an indication that the demand from the customers increased in 20917, and Axon had to spend more to earn customers’ loyalty.

Service

Service is quite important in the company’s day-to-day operations. For this reason, Axon enjoys the service delivery offered by Trocha more than any other supplier. Therefore, the level of service quality offered by the suppliers defines Axon’s spending level on the respective supplier.

Historical trends in demand and future projection

Demand has been increasing. For instance, the demand from the suppliers increased by a big margin from 2015 to 2017. This is an indication that the demand from the downstream customers has increased as well (Granell 834). To cater to the increased demand, Axon has had to spend more on the suppliers to meet it effectively. The history could, therefore, predict the future. The demand is expected to rise in the future. For this reason, the company will have to spend even more to meet the demand posed by the end consumers.

Works Cited

Axon, David. Exploring the role of the stakeholder in fast-moving consumer goods cross-sector collaborations: a phenomenological study. Diss. Edinburgh Napier University, 2016.
Granell, Ramon, et al. “Power-use profile analysis of non-domestic consumers for electricity tariff switching.” Energy Efficiency 9.3 (2016): 825-841.
Hatting, Henry Lindo. An opportunity exploration and best practices analysis for South African mobile value-added companies entering the Ghanaian market. Diss. Stellenbosch: Stellenbosch University, 2015.