The Role of Supply Chain Management in Marketing

The role of supply chain management in marketing

Effective management of the supply chain has a positive role in reducing costs and improving customer value, through the combination of supply chain management and marketing, will help enterprises to better serve their customers and develop new markets. The role of supply chain management in marketing, specifically in what aspects. The following is my organization of the role of supply chain management on marketing related content.

The role of supply chain management on marketing Part 1

1 Supply Chain and Supply Chain Management Theory

A commodity from production to the final arrival in the hands of the consumer, through the supplier, manufacturer, wholesaler, retailer, consumer, these are closely related to the supply and are not related to each other the articulation of enterprises and people is called the supply chain. The supply chain is a complex dynamic network that will continue to have new developments over time.

The concept of supply chain management was introduced in 1982 and has been hotly debated in the management community for the past two decades. The exact meaning of supply chain management is a set of methods used to effectively integrate suppliers, manufacturers, warehouses, and stores in such a way that products are produced in the right quantities, at the right time, and delivered to the right place, thereby minimizing system costs while meeting service level requirements. The traditional "vertical integration" management model makes enterprises bear huge costs at the same time, reduce the response to market changes, and forced to operate unfamiliar business, thus increasing the risk of operation; and supply chain management using horizontal integration, multiple enterprises together with the consumer research, to determine which products or behaviors can bring the most value to consumers. Bringing the most value to consumers. In the past, the nodes of the supply chain is a zero-sum game between the relationship between the nodes of the supply chain, that is, from the beginning of the raw material suppliers to the end of the supply chain of consumers, their profits are often at the expense of other enterprises to bear the loss of the cost, and the supply chain management through the strengthening of the strategic relationship with the upstream and downstream cooperation between the enterprises, the supply chain of the various enterprises in order to *** the same interests of cooperation, the goal is to obtain a win-win situation.

2 Supply Chain Management and Modern Marketing

Supply Chain Management covers the whole process from the raw materials of the product to the final arrival of the consumer's hands, and its goal is to reduce costs while improving the level of customer service. And modern marketing after years of development, entrepreneurs and scholars increasingly recognize that marketing should be led by the original product-oriented change to customer-oriented, the core of modern marketing is to y understand the consumer, to meet the needs of consumers, to provide better service to consumers.

Supply chain management and marketing are both aimed at improving customer service, which is the same concept, so supply chain management and marketing can be combined together as one of the means of marketing, to help companies better serve their customers, improve customer experience, strengthen customer loyalty, while attracting new sources of customers, so as to ensure that the company's performance can maintain a steady growth.

3 Role of Supply Chain Management in Marketing

The basic theory of marketing is the 4P theory, that is, price, promotion, channel, product, the supply chain management as a means of marketing management, will have an important impact on each of these four aspects.

3.1 Supply chain management on price. Impact

Supply chain management mainly affects the price from two aspects: speed and quantity. First of all, as far as price is concerned, supply chain management can consider the cost from the supply chain as a whole, so as to reduce the cost, and the reduction of cost will make the price of the product correspondingly lower. Companies often find a phenomenon, a certain product (eg: baby diapers, etc.) demand changes in a stable level, but its order changes are fluctuating a lot, so the demand variation is amplified, the inventory increases, the delivery deadline is delayed, the whole system operating efficiency is reduced. This principle of accelerated amplification of demand variation is the bullwhip effect. The bullwhip effect leads to product backlogs, supply exceeds demand, and the market is unable to absorb such a large number of products, which increases storage costs and leads to ineffective resource utilization. Through the supply chain management, enterprises can through the strategic partners of the information **** enjoy, more accurately predict the actual demand of customers, effectively reduce the bullwhip effect, increase the utilization of resources, reduce costs, thereby reducing the price, to help enterprises in the price of the competition more advantageous.

Secondly, supply chain management can effectively improve the speed of response to market changes, the market situation is rapidly changing, supply chain management, the cost of effective monitoring and management, the pricing decision-making stage as far as possible to move forward, according to the market response and the actual cost of the timely development of a most advantageous price for the enterprise.

3.2 Impact of Supply Chain Management on Promotions

Under supply chain management, enterprises form strategic alliances, and adopt joint promotions, i.e., sharing promotional costs and profits, so as to save promotional costs, reduce the burden on enterprises, and achieve better promotional results. In the long run, this can also strengthen the mutual trust between the alliance enterprises, which is conducive to future long-term cooperation and consolidation of the alliance.

3.3 Impact of Supply Chain Management on Channels

Supply chain management for channels can more accurately understand the coverage of consumers, rationally set up stores and marketing networks, to avoid the design of marketing outlets is too dense, the same area there are a number of points of sale, so as to optimize the cost-effectiveness of marketing. In addition, supply chain management can also broaden the marketing channels for enterprises, enterprises can start network marketing. The most popular is network marketing, it is known as the marketing mainstream of the 21st century, but the implementation of network marketing must rely on the effective management of the supply chain to ensure that the goods can be delivered to consumers in a timely and accurate manner. And supply chain management can be through the transportation routes and storage location redesign, to provide the necessary support for network marketing.

3.4 Impact of supply chain management marketing management on products

In the past, the development of the product is based on the enterprise's own experience and customer demand guessing independent development, but based on the supply chain management marketing, the upstream and downstream alliance of enterprises can be through the network to carry out the *** enjoyment and exchange of information, *** with the participation of the development, and the integration of raw materials, transportation, warehouses, points of sale, etc., so that the supply chain management can provide the necessary support for the network marketing. The integration of raw materials, transportation, warehouses, points of sale, etc. can maximize the efficiency of resource allocation, and at the same time allow customers to personally participate in product design and development, and more intuitively and accurately grasp the needs of customers. In addition, through the integration of distributors, the integration of distributors can improve the technical capabilities of distributors, and the ability to quickly respond to abnormal customer demand.

The role of supply chain management in marketing Part 2

As soon as the science of logistics was formed, it injected a systematic thought into this field of science, which is unquestionable, because the collection of decentralized functional elements into a logistics system is the fundamental significance of logistics. However, there is a systematic thought and how to take systematic action, which is still related to two different things. The solution of the backward relationship between the benefits of each functional element of logistics is an important operation of system management. Logistics science to solve the problem of the traditional method is along the formation of logistics supply chain, in a variety of benefits of the reverse, contradictory to the main functional elements between the links, to weigh the pros and cons, to coordinate the relationship, to seek the optimal range of the synthesis curve of the two reverse trend curve, or simply give up all the chain, to manage part of the link, this treatment in the logistics system has become larger, more complex, often no longer This approach is often no longer effective after the logistics system becomes larger and more complex. The "supply chain management" of logistics is a new management idea for this situation.

The meaning of the supply chain is from the beginning of procurement through production, distribution, sales and finally reached the user, which is not isolated behavior, but a certain flow of interlocking "chain", logistics activities are subject to the constraints of the supply chain decisions, such as the concept of efficiency and inventory, the supply chain, each link has a different interest and concept, there is an inherent conflict between the functions. However, since modern management and modern technology can provide overall information for each link to enjoy, the vision can be greatly expanded to manage the whole "chain" from a general perspective instead of only managing the "interfaces" between the links as in the past, and the "interfaces" between the links can be greatly expanded. Instead of managing only the "interfaces" between the links or only a part of the links as in the past, supply chain management is actually a combination of logistics and enterprise management. Supply chain management is actually the logistics and all the activities of the enterprise as a unified process to manage.

Supply chain management has four key points:

First, the supply chain is a one-way process, as shown in Figure 3-6, the links in the chain are not divided from each other, but become a whole through the chain connection.

Second, supply chain management is the whole process of strategic management, from the overall consideration, if only rely on part of the link information, due to the limitation or distortion of information, may lead to planning distortion.

Third, the different links on the inventory view is different, in the logistics of supply chain management, not as a measure to maintain production and sales of inventory, but as a supply chain balance mechanism.

Fourth, the supply chain management to take a new management approach, such as the overall integrated approach to replace the 'alternative interface approach, with the lifting of the weakest chain to seek overall balance, with the simplification of the supply chain approach to prevent the buildup of signals to amplify the use of economic cybernetic methods to achieve the control and so on.

Supply chain management is more prevalent in Europe, which is related to the European understanding of logistics. In the European concept of logistics, always emphasize the integrated concept and not much emphasis on the concept of separation. The new integrated logistics concept adopted by the United Kingdom to emphasize the overall strategic objectives, rather than a link how advanced, in this regard is in a leading position. Many enterprises through the direct control of the supply chain benefits significantly. 1990 a 91 years of British enterprises logistics costs accounted for the average value of total sales by 7.24% significantly reduced to 5.28%; while the same period of Germany for 11%, the United States and Japan higher.

Of course, the logistics of supply chain management, although the specified business strategy to manage all the supply chain, but does not mean that all the enterprises to operate, part of the link in the management of the premise, the use of social forces to operate is also normal

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