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summary marketing & sales 1 chapter 13 & 19
a summary for the subject marketing and sales 1. this is a summary for the chapters 13 & 19. it is fully in english and important words are highlighted.
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Chapter 13Supply chains and supply chain management
A company’s supply chain includes all the companies involved in the upstream and downstream
flow of products, services, finances, and information extending from initial suppliers to the
ultimate customer. The goals of a supply chain management are to coordinate and integrate all
the activities performed by supply chain members into a seamless process, from the source to the
point of consumption, ultimately giving supply chain managers “total visibility and control” of
the materials, processes, money and finished products both inside and outside the company they
work for. This way companies can balance demand for their products and services as perfectly as
possible with available supply.
Supply chain agility:
an operational strategy focused on creating inventory velocity and operational flexibility
simultaneously in the supply chain.
Outsourcing or contracts logistics, is a growing initiative in which a manufacturer or supplier
turns over an entire logistical function to an independent third-party logistics company (3PL) that
helps manage warehouse space, provides transportation solutions, assists with information
sharing or provides enhanced technological innovations. Outsourcing enables companies to cut
inventories and locate stock at fewer plants and distribution centers while still providing the
same level of service.
SCM is a key means of differentiation for a company and therefore represents a critical
component in marketing and corporate strategy. Companies that focus on CSM will eventually
earn greater revenues.
Supply chain integration
A key principle of SCM is that multiple entities should work together to perform tasks as a
single, unified system rather than as multiple individual units acting in isolation.
As companies become increasingly focused on SCM they develop a supply chain orientation.
This means they implement management practices that are consistent with a “systems thinking”
approach. Leading supply chain oriented firms possess 5 characteristics that set them apart from
their competitors:
1. They are credible, they have the capability to deliver on the promises they make
2. They are benevolent, they are willing to accept short-term risks on behalf of others, are
committed to others and invest in other’s success.
3. They are cooperative, they work with rather than against their partners when seeking to
achieve goals.
4. They have the support of top managers, these managers possess the vision required to do
things that benefit the entire supply chain in the short run so they can enjoy greater
company successes in the long run.
, 5. They are effective at conducting and directing supply chain activity, as a result, they are
better off in the long run financially than those who are not as effective.
In modern supply chain systems integration can be either internal or external to a specific
company of both. From an internal perspective the best companies develop a managerial
orientation toward demand- supply integration DSI. under the DSI philosophy the functional
areas in a company charged with creating customer demand communicate frequently and are
synchronized with the parts of the business charged with fulfilling the created demand.
The 5 types of external integration sought by firms interested in providing top level service to
customers:
Relationship integration
the ability of two or more companies to develop social connections that serve to guide
their interactions when working together. The capability to develop and maintain a shared
mental framework across companies that describe how they will depend on one another
when working together.
Measurement integration
reflects the idea that performance assessments should be transparent and measurable
across the borders of different firms. It should also assess the performance of the apply
chain while holding each individual firm or business unit accountable for meeting its own
goals.
Technology and planning integration
refers to the creation and maintenance of information technology systems that connect
managers across the firms in the supply chain. It requires information hardware and
software systems that can exchange information when needed between customers,
suppliers, and internal operational areas of each of the supply chains.
Material and service supplier integration
requires firms to link seamlessly to those outsiders that provide goods and services to
them so that they can streamline work processes and thereby provide smooth, high
quality customer experiences. Both sides need to have a common vision of the total
value-creation process and be willing to share the responsibility for satisfying the
customer requirements to make supplier integration successful.
Customer integration
is a competency that enables firms to offer long-lasting, distinctive, value-added offerings
to the customers who represent the greatest value to the firm or supply chain. Highly
customer-integrated firms assess their own capabilities and then match them to customers
whose desires they can meet and who offer large enough sales potential for the linkage to
be profitable in the long term.
It is important to have success in achieving both the internal and external types of integration.
Integration involves a balance between barriers and enablers.
The key processes of supply chain management
, When firms practice good supply chain management, their functional departments, or areas, such
as marketing, research and development, and production are integrated both within and across
the linked firms.
Integration is HOW excellent SCM works
The business processes in which the linked firms work together represent the WHAT of SCM
Business processes: are composed of bundles or interconnected activities that stretch across firms
in the supply chain. Represent key areas that some or all the involved firms are constantly
working on reducing cost or generating revenues for everyone through SCM. There are 8 critical
business processes on which supply chain managers must focus:
1. Customer relationship management
2. Customer service management
3. Demand management
4. Order fulfillment
5. Manufacturing flow management
6. Supplier relationship management
7. Product development and commercialization
8. Returns management
1.customer relationship management CRM process
This enables companies to prioritize their marketing focus on different customer groups
according to each group’s long-term value to the company or supply chain. The CRM process
includes customer segmentation by value and subsequent generation of customer loyalty for the
most attractive segments.
Designed to identify and build relationships with good customers
2.customer service management
Designed to ensure that the customer relationships from the previous step remain strong.
The customer service management process presents a multicompany, unified response system to
the customer whenever complaints, concerns, questions, or comments are voiced. When well
executed it can improve revenues. Customers expect service from the moment a product is
purchased until it is disposed of, and the customer service management process facilitates touch
points between the buyer and seller throughout its life cycle.
3.demand management
Seeks to align supply and demand throughout the supply chain by anticipating customer
requirements at each level and creating customer-focused plans of action prior to actual
purchases being made. Also seeks to minimize the costs of serving multiple types of customers
who have variable wants and needs.
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