Week 5 - Supply chain management (P = Place)

Question 1

What’s the difference between upstream and downstream?

Answer 1

Upstream: retailer -> distributor -> manufacturer -> supplier

Downstream: supplier -> manu. -> distributor -> retailer

Question 2

What moves between these streams?

Answer 2

1. Information Flows

2. Materials

Question 3

Why do you think businesses use intermediaries in their supply chains?

Answer 3

• You need to work very closely with the wholesaler because they are in control of everything

Question 4

How to ensure your wholesaler is on your side in B2B?

Answer 4

1. Incentives
2. Marketing efforts
3. Wine and Dine - form real relationships

Question 5

Why do you think it’s especially important to for consumer goods companies to form intermediaries?

Answer 5

Because most (FM)CGs complete with a market-wide strategy; they need to reach many more market segments than firms that pursue a market-niche strategy.

Question 6

Can you think of a company that pursues a market-niche strategy? (differentiator)

Answer 6

• Tesla

Question 7

Can you think of a company that DOES NOT pursue a market-niche strategy with a few intermediaries? (cost leader)

Answer 7

• Ikea

Question 8

What are circumstances that could threaten (ie. risks) the successes of supply chains?

Answer 8

• Natural Disasters
• Geopolitical risks
• Epidemics
• Terrorist attacks
• Environmental risks
• Volatile fuel prices
• Rising labour costs
• Currency fluctuations
• Counterfeit products
• Port delays
• Market changes
• Supplier’s performance
• Forecasting accuracy
• Execution problems

Question 9

What to look at to avoid threats?

Answer 9

• Controllability: you need to understand what is in your control and what isn’t.

Question 10

Tiffany and co case study.

Answer 10

• Diamonds come from where?
• What conditions is it being sourced? How damaging to the environment?
• Track and make it transparent where the product comes from.
• Who makes how much profit? Where exactly is it found?
• Blockchain!!!
• avoid sourcing unsustainable materials
• train local employees
• calculate fair living wage - work with economist taking into account fam size, transportation costs etc. true to local realities

Question 11

How to make things sustainable?

Answer 11

1. Remanufacture - same mag but produce diff covers
2. Reuse - plastic bottles, ink cartridges
3. Recycle - process of changing - waste material into different product

Question 12

What does the 3 R’s focus on dealing?

Answer 12

Used products (garbage), but most of the environmental damage is done before products even reach the consumer.

Question 13

Do you see other ways of creating more sustainable supply chains?

Answer 13

-

Question 14

What we covered today?

Answer 14

1. How marketers should focus both on upstream and downstream activities
2. How supply chains are both about material and information flows
3. SSCM and how technology can help create economic and environmental benefits