Ch 11 - Customers, Supply Chain & SCM Flashcards
What is Supply Chain
All of the activities and information flows needed to transformation of goods from orgin to consumption
Upstream - to supplier
Downstream to customer
What are the activities in a supply chain. Typical
Production Planning Purchasing Material management distribution Customer service forecasting
Supply chain has can from push model to pull
Driven by online and new models
Gone from product centric to market centric
Push - power is with suppliers, distributors etc
Pull - power is with the customer
Upstream supplier relationships. What are the key considerations
1) Overall strategy - e.g sources / No. / Cost / Speed / Quality / outsource or make
2) Antognastic v partnership
3) Service Level Agreements
The Use of IT in upstream SCM should be leveraged.
Eprocurement - esourcing / epurchasing / epayment
EDI - linke system with supploers ensure efficient orders
Use of internet - to shop around
Disintermediation - skip supplier go to wholesaler
Downstream SCM. VIP to understand customer. What is typicalpurchasing behaviour of industrial markets
Motivation - typical that of or v individual
Individal v group - could be either
Org infleunces - large (likley formal) small (no seperate team, informal etc)
Recipricol buying - condition to buy from each other
Procedure - likely more formal (quotes / tenders / performance specs)
Derived demand - keep an eye out. demand might fall if market is falling etc
Downstream SCM. VIP to understand customer. Segment the industrial market by
Geo/ purcahsing charcs/ expectations / company type / size
Downstream SCM. VIP to understand customer. Understand behaviour so WHY buy. help ID CSF
Maslows
Cognitive Dissonance - when attiudes and behavour dont align - e.g regret purchase - need to look at
Personality and product choice - typically consistent
Infleunce of other
Downstream SCM. VIP to understand customer. Segment by;
Pyschological Purchasing characs Demographic Geographic Expectations
MArketing - 6 markets model. helps decide who it needs to market to. what are the markets
Customer markets Referral markets - e.g bank to insurance Supplier market Recruitment - to get staff Infleunce markets - PR market Internal - e.g AIBMS
When looking at overall approach to marketing there are two main types what are they
Relationship v transactional
Relationship is far more focused on retention / customer etc transaction is one off / product focused
Branding typicall includes name / logo / colour scheme and associtations. Koter identified 5 brand strategies. what are they
1) Line extensions -existing brand but new variant/ same product category - FORD Focus / KA
2) Brand Ext - existing brand new product category
3) Multibrand - Kellogs
4) New brands
5) Co brands
Managing ongoing relationships with customers / downstream. CRM
no comment
Managing ongoing relationships with customers / downstream. CRM not always suitable for all customers. what should you look at to determine whether to retain and eliminate / reengineer the customer.
Customer Account Profitability
What are the ads and disads of Customer Account Profitability
Ads
Considers non production costs
id valuable customers
- id financial value of marketing efforts
Disads
Might encourage ill judged product changes
difficult getting reliable information
may overlook life vale
may overlook purchasing combination (e.g lending plus AIBMS)
CLV is the PV of future cash flows from a customer. What are the inputs needed to calculate
churn rate discount rate retention costs period periodic revenue profit margin
Marketing audits are a type of position audit what does it look at 2) what will it enable 3) What are the stages
Looks at
products and relationship with customer
answers in relation to marketing strategy:
• Where are we now?
• How did we get here?
• Where are we heading?
Enables
deeper understanding of marekt and ways to gain an advantage
Stages
Define market - product / size / growth
Performance differentials - look for segments not doing so well
Profile competitor strategies - know your enemy
Determine strategy planning structure - how SM will be oranised ( staff / goals etc)
Customer satisfication and retention. What are SERVQUAL features
1) Tangibles - how you appear
2) Reliability -
3) Responsiveness - willingess to help and speed
4) Assurance - knowledge / courtesy abiloty to inspire trust
5) Empathy - caring and personalised attention
Customer satisfication and retention. What are techniques for retention
1) Personalisatoin
2) mass customisation
3) extranets
4) Opt in email
5) Online communities
Customer extension involves reselling / cross selling / up selling / reactiviting increases value. What a key tool
Propensity modelling!
Effects of IT on the structure of the downstream supply chain.
Disintermediation - skipping / spotify
Reintermediation - add to supply to chain (business adds daft)
Counterintermdiation - rivals set up their own intermediations
