Marketing 333Chapter 14

Supply Chain Management

Supply Chain Management

Supply ChainSupply Chain

A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

Supply Chain Integration

Relationship Integration

Relationship Integration

The ability of two or more companies to develop social connections that serve to guide their interactions when working together.

The ability of two or more companies to develop social connections that serve to guide their interactions when working together.

Role Specificity

Role Specificity

When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which firms are the

followers, and which responsibilities are assigned to

each firm.

When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which firms are the

followers, and which responsibilities are assigned to

each firm.

Measurement Integration

Measurement Integration

Measurement Integration

The performance assessment of the supply chain as a whole that also holds each individual firm or business unit accountable for meeting its own goals

Activity-Based costing (ABC)

An accounting method used in measurement integration to assess the costs associated with each supply chain activity

Technology and Planning Integration

Technology and planning integration

The creation and maintenance of information technology systems that connect managers across and through the firms in the supply chain

Material and Service Supplier IntegrationFirms should link

seamlessly to those outsiders that provide goods and services to them.

Internal Operations Integration

Internal Operations Integration

Links internally performed work into a seamless process that stretches across departmental and/or functional boundaries, with the goal of satisfying customer requirements

Customer Integration

CustomerIntegrationCustomer

Integration

A competency that enables firms to offer long-lasting, distinctive, value-added offerings to those customers who represent the greatest value to the firm or supply chain

ABC Segmentation

The supply-chain process whereby customers are placed into groups A, B, and C according to their overall long-term value to the firm and to the extent to which the firm can serve their desires

Customer Relationship Management

Customer Relationship Management

Process

Customer Relationship Management

Process

The prioritization of a firm’s marketing focus on different customer groups according to each group’s long-term value to the company or supply chain; designed to identify and build relationships with good customers.

Customer Service Management

Customer Service

Management Process

Customer Service

Management Process

A multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong.

Demand ManagementDemand

Management Process

DemandManagement

Process

The alignment of supply and demand throughout the supply chain to anticipate customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior.

Order Fulfillment

Order FulfillmentProcess

Order FulfillmentProcess

A supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders.

Manufacturing Flow Management

Manufacturing Flow

Management Process

Manufacturing Flow

Management Process A process that ensures that

firms in the supply chain have the resources they need

Supplier Relationship Management

Supplier Relationship Management

Process

Supplier Relationship Management

Process

A supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

Product Development and Commercialization

Product Development and Commercialization

Process

Product Development and Commercialization

Process

The group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.

Returns ManagementReturns

Management Process

Returns Management

Process

A process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the value of the returned assets to the firms in the supply chain.

Supply Chain Strategies

Lean Supply Chain

Management

Lean Supply Chain

Management

Agile Supply Chain Management

Agile Supply Chain Management

The strategy that focuses primarily on the removal of waste from the supply chain to achieve the lowest total cost to the members of the supply chain systemThe supply chain strategy that focuses primarily on the ability of the firm to fulfill customer demand, even if this means somewhat higher costs

The supply chain strategy that focuses primarily on the ability of the firm to fulfill customer demand, even if this means somewhat higher costs

Lean versus Agile Supply Chain Management

Mapping The Supply Chain

Logistical Components of the Supply Chain

SupplyChainTeam

Sourcing & ProcurementSourcing & Procurement

Order ProcessingOrder Processing

Inventory ControlInventory Control

Warehouse & Materials HandlingWarehouse & Materials Handling

TransportationTransportationLog

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Trends in Supply Chain Management

Electronic distributionElectronic distribution

Outsourcing of logistics functionsOutsourcing of logistics functions

Advanced computer technologyAdvanced computer technology

Globalization of supply chain managementGlobalization of supply chain management

Outsourcing of logistics functionsOutsourcing of logistics functions