The supply chain is a collection of physical entities such as manufacturing plants, distribution centers, conveyances, retail outlets, people, and information, which are linked through consumption. Supply chain management has been recognized as an important business element due to the fact that decreased time, as well as cost to the customer, will greatly contribute to their competitiveness within their perspective industry. Supply chain management reduces product costs through the elimination of unnecessary steps and adds value to the customer service function by more closely managing the coordination among logistics providers and customers. It is primarily concerned with managing the company 's integration with transportation and information providers as it defines and drives the requirements for
These authors indicate that the uncertainty surrounding supply chains can be attributed to three sources: supplier uncertainty; demand uncertainty; and technology uncertainty. Collaboration in supply chain relationships is becoming more prevalent because of its ability to reduce uncertainty (Hoyt et al., 2000; Monczka, Petersen, Handfield, & Ragatz, 1998; Peters & Hogensen, 1999). 2.3.2 Company environment This sub-factor is related to the company’s relationship with suppliers and their level of trust and commitment. Company environment is also related to the company’s expectations of quality, on time delivery, competition in the sector, and the level of rivalry among firms. In order to respond effectively to demand, companies realize that imports are a good option for obtaining flexibility in response, even though working with countries from overseas implies working with uncertainty (Wu, 2006).
Supply Chain Analysis (Supply Chain Analysis and Mapping) − Identification of near-term goals and clarification of objective lists to disclose closely defined industries and companies − Creation of messaging that will reconnect with the target audience − Stronger interactions with local companies in the supply chain 2. Value Proposition Analysis (Value Proposition) − Companies use this analysis to target audiences who will gain most from using the company’s products and this also supports to maintain its competitive advantage as known as economic moat Purchasing Cost Analysis cont’d… 3. Cost Driver Analysis (Methods of Cost Driver ) − A review of items to guarantee that the company meticulously divided production costs to goods and services − Different methods for this analysis such as: • Cost Accounting Systems Review, which is the process a company obtains the cost information and applies it into allocation. This analysis is required because a company must make sure it uses the correct cost accounting system for its production
Which helps to maximize the customer value while minimizing the resource waste. This leads to the better understanding of customer requirements and values and focuses to increase the association. The overall comparison of value vs resources depicts that, in comparison of high customer value, resource wastage can be compared to nil. It’s a stereotype that lean organizations are suited best for specific kind of business, but it is not only a strategic or cost reduction program. It is more than that, the way of thinking and responding to the problems for an entire
“In the consumer marketing, brands are often the initiating point of the difference between competitive proposals, so that they can be significant for organizations success. Thus, it is very important that brand’s management applied by strategic method. The brand is a fundamental product of a company. Brand equity shows a price difference that a powerful brand attract it in its sale in comparison with other brands. In recent researches about brand equity, there are two main prominent theoretical points of view that provide valuable views into the body of brand equity.
While companies often view such point-based programs as a fast way to enhance profitability by inducing customers to buy, they are finding that there is a much greater value provided by loyalty programs: the collection of information from program members. Companies can then use this data to develop a 360-degree view of customer interactions and determine how best to tailor process enhancements by segment – particularly for high-value
it is define as a business strategy to attract, maintain and improve customer relations with the technology development and companies are paying to create beneficial relationship based on to optimize customer perception value(Berry 1983).Relationship marketing is a part of customer relationship management (CRM) its focus on long term customer engagement rather than short term and loyalty.Ndubisi (2004) more and more firms are capitalizing on strong firm customer relationship to gain invaluable information on how best serve to customer and keep them from defecting to competing brand. Relationship marketing is more important in business environment especially in financial services. Relationship marketing is a way the insurance companies and banks got competitive edge and enhance the customer loyalty. When the relationship with the customer is high quality and trust worthy the customer is more satisfied. Relationship marketing also helps to increase market share, profitability and reduce the cost (Reichelled 1993).By maintain relationships with the customer organizations get market information and then easily prepare the better planning for marketing strategy in the future .wang (1999) define relationship marketing as an effort to creat,maintain and enhance strong relationship with target customers and
However, it could be argued that SMA holds some common characteristics. Specifically, it focuses on a much broader scope, gathering both financial and non-financial information about the performance of the competitors of a company as well as the market in which it operates. Also, it exploits linkages in the whole value chain by optimizing internal activities and striving for continuous improvements. Additionally, the strategic position of a company is closely related to the weight placed on different tools of management accounting with regard to cost reduction and/or product differentiation. To sum up, SMA is an outward, forward-looking approach that combines financial and non-financial information for the competitors and the environment, with its main focus on the strategy followed by the company in the context of the whole value system(Larsson,
The profit margin is the value that’s captured and created by a company: Value Captured and Created – Cost of Creating that Value = Margin If a company creates more value, it is likely that the company would be more profitable. By providing more value to the business’s customers, will build a competitive advantage for the business itself. Hergert and Morris (1989) stated the following: “The Fundamental notion in the value chain analysis is that a product gains value as it passes through the vertical stream of production within the firm. When created value exceeds costs a profit is generated.” Primary activities can be directly related to the maintenance and support of a product or service, physical creation, sales and distribution after-sales service. More defined this involves the inbound logistics, operations, outbound logistics, marketing and sales and after-sales service
Choices concerning the amount of suppliers can have a immense effect on the amount of interaction with suppliers and the level of rivirail between suppliers. A fraction of the suppliers delivers a sense of security to suppliers. It inspires suppliers to devote funds and human assets into the transaction liaison. A common perspective is that companies strive for a stability among the level of competition between supplier to accomplish economic proficiency and the level of teamwork with supplier to govern the dependability and quality of supplies. The level of market orientation of the TGS is indicated by the amount of suppliers used.