Need for supply chain management pdf

The main purpose of the paper is to explore convergence of supply chain management and marketing mix strategy and propose a matrix for further research in this area. SCM systems coordinate and integrate the flow of materials, information, and finances from supplier to manufacturer to wholesaler to retailer to the end consumer. SCM has been conceptualized as the total flow of a distribution channel from the supplier to the ultimate user Ellram and Cooper, ; Cooper and Ellram, ; Cooper et al.

SCM focuses on efficiency of supply i. The synergies between SCM and marketing have been widely acknowledged e. Martin and Grbac, ; Ellinger, ; Soonhong Min and John Mentzer, ; Svensson, , leading Piercy to conclude that their better coordination could define competitive advantage in new ways. Within the supply chain management as well as the marketing literature, the need to link both sides has already been emphasized. Influence of SCM in areas which were originally domain of marketing, is increasingly recognized.

According to Flint , effective marketing strategy implementation demands sound supply chain management, as it influences all components of a marketing mix strategy. Jerome McCarthy in Since then, there have been many advances in marketing thought and conceptualization, including the broadening of the marketing concept s , an emphasis on the exchange transaction s , the development of Relationship Marketing and Total Quality Management s , and most recently an emphasis on society at large.

The American Marketing Association AMA has unveiled a new definition of marketing in October, to reflect its broader role in the society. Additional variables suggested for inclusion into the marketing mix are Packaging Patty, and People Baker, A central aspect of K-Mart's marketing communication strategy was to issue pamphlets and circulars for promoting sale items. The mailers increased store traffic and invariably increased store sales. However, the marketing efforts were not tied into supply chain operations.

As a result, there were frequent shortages of promoted sale items. Customers came in to buy the sale item, were frustrated that it wasn't there, and left the K- Mart store with dissatisfaction.

Customer experience comes through various aspects such as product, people, processes and promises. The customers also come with an expectation of enjoying all the promises made by the brand. The primary promise for any customer will be product availability. When customers visit the retail shop, they generally come with an expectation that the products are always available.

The non- availability of the products leaves them disappointed and dissatisfied. This problem is prominent, especially during the promotion period. Furthermore, after finding out that advertising circulars and pamphlets did not work well, K- Mart announced a new retailing strategy in According to new marketing strategy it decided to stop the weekly advertising circulars and tried to lure customers by cutting prices on thousands of items. Saporito Bill et al. Its problems go back to its early days when it went on increasing the number of stores but failed to maintain pace in distributing the merchandise to those stores.

Also, its distribution system was comparatively slow compared to its competitors like Wal-Mart. K- Mart's supply chain management became a serious brand liability, while Wal-Mart turned its supply chain management capabilities and strengths into a core element of its marketing mix strategy. All these had a negative effect on K- Mart performance and it incurred huge losses even as its competitors became more profitable.

Finally K-Mart filed bankruptcy on January 22, By contrast, Wal- Mart's supply chain management is central to its marketing mix strategy. Wal-Mart's business model is to use automated supply chain management as a source of competitive advantage. Wal-Mart has added inventory and distribution centers to better serve its customers and consistently deliver on customer value proposition by employing world-class supply chains.

For many firms, it is still a challenge to link marketing strategy and process of supply chain management. Wal-Mart has capitalized its supply chain management capability in effective design and execution of its marketing strategy. In the case of Wal-Mart, convergence of supply chain management and marketing mix strategy provided a strong basis for sustained competitive differentiation and long-term competitive advantages. According to Lee, , the influence of marketing activities on supply chain management, and vice versa, have to be understood and coordinated, for example, pricing, promotion, as well as product mix efforts influence delivery times and supply chain costs.

Similarly, supply chain costs strongly impact marketing success of product and ultimately firm profitability. Supply chain management and marketing have not always been seen to be closely linked in many firms. Rainbird, M. In many firms, the supply side still seems to be disconnected from the demand side and supply chain managers have only a faint idea of the drivers behind customer demand. Not surprisingly, these integrated companies have outperformed their competitors on a wide range of performance criteria viz.

With the help of Venn diagram fig. Also, if consistent and timely information does not flow from the customer interface, the firm will not be able to respond to differentiated needs of individual customers and customer segments. Consequences of such information gap are sub-optimal product and service development or differentiation and ineffective product and service delivery. Sock-outs caused by mismatch between the demand and supply and high price of product due to the inefficient supply chain management will definitely have a serious impact on the brand image.

McKeller is director of the supply chain management programs in the executive education unit of the Wisconsin School of Business, as well as a senior lecturer in the school's Grainger Center for Supply Chain Management. The text includes critical developments from the field, such as cases from emerging healthcare and service industries, procure-to-pay redesign, supply risk, innovation, sustainability, collaboration, and much more.

Students examine key changes in supply management and the impact of the global economy and ongoing business uncertainty on continuous cost and value management across the supply chain.

Numerous real-world cases and captivating examples help students gain contextual insights and knowledge into the strategies, processes, and practices of supply management--giving these future managers a thorough understanding of the impact that purchasing and supply chain management have on the competitive success and profitability of today's organizations.

It is understandable since disaster region is the focus of the whole system during disaster relief period. Hence, the studies on other parts of the whole chain could be a direction for future research. We believe that academic studies on some questions would be very interesting to pursue. In addition, future research focusing on the component of information within this system could be another direction for research in this area.

As previously noted, although there is already a literature stream about information technologies in this field, the IT advancement is progressing so fast nowadays and the research opportunities would always be there. That said, some new information technologies can always be applied in the practice of humanitarian aid activities. On March 8, the Kuala Lumpur-Beijing airliner with people on board abruptly disappeared.

In the aftermath of this disaster, various governments or organizations from different countries joined the efforts of searching the missing plane. IT technologies such as cloud computing and big data analysis have been used to assist the missing plane search. In particular, big data analysis was adopted for the first time in such 6 activities according to Malaysian Prime Minister NajibRazak's statement. Also interestingly, it is observed that the wisdom and technologies of crowdsourcing have been utilized in the search activities of the missing plane.

Additionally, there are some interesting phenomena such as trust and rumors about this event that Operations Management or Supply Chain Management researchers can consider as research topics in humanitarian aid management.

To conclude, research frameworks are important and necessary because a good research framework draws a big picture of specific area which would be very helpful for people to understand the relationships of the important components and factors within that area.

Our exploratory study suggests that most of the existing literature about research frameworks treats the disaster relief management as a logistics system i. This has greatly motivated us to conduct this study. The framework we developed offers a roadmap from a supply chain management perspective for researchers. With this framework we have conducted a systematic literature review and offered directions of potential research opportunities in this field.

It appears that history seems to repeat itself. And it is our hope that the framework we propose is helpful for people to see a clearer and more comprehensive picture of humanitarian supply chains and ultimately would guide them in the humanitarian aid operations practice or research in this arena.

Nezih Altay, Dr. Yuwen Chen, Dr. We also thank the two anonymous reviewers for their valuable comments and suggestions. References7 Allahviranloo, M. Selective vehicle routing problems under uncertainty without recourse. European Journal of Operational Research, 1 , Coordination in humanitarian relief chains: Practices, challenges and opportunities.

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