Supply Chain Management Benefits Assignment

Supply Chain Management Benefits Assignment

This is a  solution of Supply chain management benefits assignment in which we discuss that how successful organisations have used the supply chain to enhance their customer value.

Adding value through Marketing

Ques-1 Supply chain consists of upstream and downstream partners, including suppliers, intermediaries and even intermediaries customers. Examine how successful organisations have used the supply chain to enhance their customer value?

Answer-1:The Supply chain is one of the major factor through which manufacture can enhance the customer value. In supply chain manufacturer use the various partners such as suppliers, dealers, agents and intermediate customers and enhance the customer value through offering various benefits (Zikmund, 2003). Various organisations now a day are streamlining their supply chain processes in such a way that maximum customer value can be added through their supply chain strategy. Some of the parameters of customer value and supply chain streamlined by the organisations can be shown as follows:

  1. Latest fashion: In the fashion industry customers are more conscious about buying the clothes which are of latest fashion but the old supply chain of the various companies do not allow them to design the latest fashion clothes since time to market for major companies is large. Hence ZARA which is a major fashion retailer has implemented speed to market supply chain which caters to the latest fashion proposition for the customers (Tapp, 2001). Hence customer value proposition has been enhanced using the speed to market supply chain.
  2. Customer experience: Customer experience is another major factor which adds value for the customer. In order to enhance the customer experience DELL has designed such a responsive supply chain which provides customer facility of customisation and helps in providing responsiveness through configure to order facility through their efficient supply chain mechanism (Sheth and Parvatiyar, 2000).
  3. Product Innovation:Designing a product which customer like and admire is the best way to add customer value. APPLE has championed itself in product innovation by adding various innovative products to its product portfolio in recent years. The Change in supply chain which APLLE has done is through outsourcing the manufacturing and logistics services.
  4. Everyday low price:Everyday low price is one of the most innovative concepts which have added customer value through efficient supply chain. WAL-MART by using the cost efficiencies in their supply chain has implemented the EDLP strategy in the retail sector and have added value for their customers.
  5. Product selection and availability:Getting the desired products as and when customer requires is one of the major addition to customer value. And for providing the availability to the customer the supply chain of the company needs to be highly efficient. AMAZON through their online book store has provided this unique availability to their customer which adds value to the customer. In order to add the value through product availability supply chain of the company needs to be very reliable. The Reliability in the supply chain should be present in form of the order fulfillment.

There are various supply chain element which organisations are modifying in order to add the customer value since these elements of the supply chain are very crucial. Some of the major supply chain elements which companies needs to modify in order to enhance customer value are mentioned as follows:

  1. Demand Supply management: A proper supply chain management system manages the demand and supply of goods for the customers in order to provide goods to customer as and when he requires them. Hence customer gets the goods at requirement and availability of the goods provides customer value fir the manufacturer (Payne et al, 1999).
  2. Breaking the bulk: The Major motive of the supply chain activity is to break the bulk. Manufacturer produces the goods in bulk which it passes on to the wholesaler and wholesaler through various other intermediaries provides these goods to customer in small quantity.
  3. Mass customisation: Various successful organisation now a day are using the customer driven supply chain mechanism in which customer is the only element which drives the supply chain according to his requirement hence quantity, specifications and even timings of production and distribution of goods is decided by the customer.
  4. Location: Location is major factor in any supply chain and it is very crucial for manufacture to provide the good location to customer for providing the goods. Hence if the location at which manufacturer is providing the goods to customer is good then it will add value to the customer (Manning and Reece, 2007).
  5. Transportation and logistics: Fast transportation and logistics facilities are provided by the company for its customers. Transportation and logistics facilities are helping the customers to acquire the goods as per their requirement and at the same time helping the company to implement the just in time production system. Hence transportation and logistics operations also adds value to the customer value in supply chain mechanism.

Ques-2 Cova (1996) argues that the postmodern individual in the light of shifting markets and advances in technology ‘is both isolated and in virtual contact with the whole world electronically. Postmodern daily life is characterised by ego concentration, encouraged by the spread of computers’. With reference to examples discuss the opportunities for organisations to develop new products for this changing world.

Answer-2 The World is changing and the technology has reached to advanced level and every new product introduced in the market makes use of the best of technology available. Hence various services which were provided manually have become technically accessible with one click away from the customer. Technology has enabled the production of the products which will change the entire life of the customers.

Let’s take the example of the media industry, earlier people used to read the newspaper in physical form (Kotler & Keller, 2006). But with the development of internet technology, e-paper were discovered and now a day there are more number of readers who access the newspaper through online news website and very less number of people read the news through newspaper. The e-paper is required since most of the customers are having the online presence and in today’s fast communication era they need to be updated about the every single news and happenings in the world. Most of the customers now a day prefer to have the online news than the newspaper.

The Stocks trading which is there in the business from long time, but in old times stock trading was done manually. There were physical presence of stock exchanges in major cities and traders who want to deal in stock will go to exchange and look at the prices and accordingly will decide to buy or sell the stocks. This system of stock trading was highly uncomfortable for the traders and there was lot of chances of mistake to be happens in the manual stock market. But with the help of the online stock exchange system it has become highly convenient for the customers to buy/sell the stocks and that too on just a single click and sitting at the home. This new invention has increased the number of customers as well as the volume of stock trading as well by providing the ease of use for the customers.

Another major invention in the previous decade is the change in the banking services which has brought revolution in the banking industry as the current banking services has become highly comfortable for the users (King et al, 2008). The Net banking, phone banking and mobile banking has changed the way banking used to happen in earlier days. Now all the banking services whether its fund transfer, DD order, cheque book and other services can be obtained just by visiting the website of that bank.

Modern banking services have helped in using the online banking services for the customer by which customers can use the online shopping as well. By providing the easy payment gateways with the help of banking and other financial institutions, online selling process has been made superfluous and it has become so easy that even kids can make the online purchase.

The Communication technology is progressing at a very rapid pace and in short duration we encounter a new and faster mode of communication in our daily life. The Mobile phones which were initially used to just talk with the person at other side has become so high tech with the advancement in the technology such as the 3G and 4G technology that now mobile phones are having so much facility that they can even act as the personal computer (Hooley et al, 2008). Hence the communication technology is growing very rapidly.

Another major new invention in the day to day life can be seen through the money transfer systems, initially people used to have the physical cash nut with the development of time most of the transactions are now a day done with the help of the online banking services such as net banking or the mobile banking services. The Use of paper money has increased in and everyone is benefited from the paper money since it has provided ease of use for the customers.


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  • Kotler P. & Keller K. L. (2006),Marketing Management (12th Ed)Harlow :  FT, Prentice Hall,
  • Manning, G.L. and Reece, B.L (2007),selling today – Creating Customer Value (10th Ed), New Jersey: Pearson Education.
  • Payne, a., Christopher, M., Clark, M. And Peck, h. (1999), “Relationship Marketing for Competitive Advantage” Oxford: Butterworth Heinemann.
  • Zikmund W. (2003)Customer Relationship Management . London : John Wiley & Sons,
  • Tapp A. (2001)Principles of Direct Marketing and Database Marketing.  Harlow : FT Prentice Hall,
  • Sheth, J.N. and Parvatiyar, A. (2000) “Handbook of Relationship Marketing”. USA: Sage.
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