IISWBM

PGDSCLM Paper 201

Module I – Marketing in SC&LM

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 Promotional Strategy of SCM

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 Strategy 1
Adopt a demand-driven planning and business operating model
based on real-time demand insights and demand shaping

▪ Right prediction and contingency planning tool

(political upheaval, natural calamity, supplier going out of
business)
▪ Adjust pricing and promotional strategies quickly
(move additional products quickly, raise margins of high-
demand products)
▪ End-to-end visibility across the business
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 Strategy 2
Build an adaptive and agile supply chain with rapid planning and
integrated execution

▪ To adapt supply chains to changing market opportunities and

events
▪ To deploy dynamic planning capabilities and continually fine-
tune operations to respond to changing demand

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 Strategy 3
Optimize product designs and product management for
manufacturing, supply and sustainability to accelerate profitable
innovation

▪ Innovation is crucial
▪ Products must be manufactured at the right cost, place, and
time
▪ Designs must be optimized for supply, manufacturability, and
supply chain operations

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 Strategy 4
Align your supply chain with business goals by integrating sales
and operations planning with corporate business planning

▪ To integrate business planning that involves people, process,

and technology elements of the business
▪ To integrate financial strategic budgeting and forecasting
systems with operations planning and allows smart trade-off
decisions to be made for the business

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 Strategy 5
Embed sustainability into supply chain operations
▪ To embed sustainability as a core strategic component by
incorporating it as a key requirement across all supply chain
processes
▪ To ensure reduction of carbon inefficiencies, minimized energy
consumption, less waste with “recycle-reuse-refurbish”
materials, and optimized travel and transportation
▪ To undertake compliance audits, best practices, and benchmarks
that will provide a governing framework for sustainable supply
chain operations
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 Sustainable Supply Chain Management
▪ Supply Chain Sustainability (SCS) is a holistic view of supply
chain processes and technologies that addresses the
environmental, social and legal aspects of a supply chain's
components as well as their economic factors

▪ SCS is based on the principle that socially responsible products

and practices are not only good for planet Earth and the people
who live here, they are also good for building positive brand
awareness, lowering risk and improving long-term profitability

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 SCS (contd)
▪ Knowing the level of environmental, social, and economic
impact and viability of the vendors and customers is becoming
increasingly common as all industries move towards a more
sustainable future.

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 Strategy 6
Ensure a reliable and predictable supply

▪ Without a reliable supply, a manufacturer will tend to hold

inventory buffers to ensure meeting customer service levels

▪ This may mean wrong products at wrong place at wrong time

resulting in supply shortfalls

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 Real-time Visibility In Supply Chain
In today’s marketplace, the difference between ensuring a
customer will return and losing revenue to a competitor can come
down to how much visibility a brand has. With real-time visibility,
a company can instantly identify places where there’s too much or
too little inventory.

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 Real-time Visibility In Supply Chain (contd)

1. Better Manage Product Demand

2. Understand Inventory
3. Promote Efficiency
4. Get a Handle on Shipping
5. Provide Excellent Last Mile Experiences

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 Recommended Purchasing Strategy

1. Supplier Optimization & Relationship Building

Less able suppliers who cannot provide a quality
service at the terms and prices required are discarded.
2. Total Quality Management (TQM)
Vendors to provide an ever-increasing quality service
with zero errors

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 Recommended Purchasing Strategy (contd)

3. Risk Management
Risk associated with the supply and suppliers needs to be
evaluated and managed suitably
4. Global Sourcing
To efficiently source goods and services from any country that
can manufacture and deliver more economically

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 Recommended Purchasing Strategy (contd)
5. Vendor Management
To assist vendors in all possible ways for them to adjust to
company’s requirements and be able to offer right goods and
services at right time with right price
6. Green Purchasing
Need for recycling and purchasing products that have no
negative impact on the environment

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 Recommended Purchasing Strategy (contd)
7. Building and Training people’s Procurement Skills

Probably the most important strategy. All other strategies

would have to be implemented by people, and if they
don't have the necessary skills to deliver the
procurement strategy, the strategy delivery will fail.

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 SCM Service Design

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 Service Supply Chain
Service Supply Chain is dedicated to providing service on the
products. It addresses the supply of parts, materials, personnel
and services needed to provide timely and effective product
service, such as repair and maintenance.

The service supply chain also involves the logistics required to

return a product for repair, servicing, replacement or recycling, a
process called reverse logistics.

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 Service Supply Chain (contd)
Baltacioglu et. al (2007) have proposed a new definition of service
supply chain: a network of suppliers, consumers, service providers
(SPs) and other supporting units that provide the resources
necessary to produce services, transform resources into
supporting and core services and then deliver these services to
customers.

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 Service Supply Chain (contd)

Wang et. al (2015) subdivide the service supply chain into two
categories based on the specific form of the product: namely, the
service only supply chain (SOSC) and product service supply
chain (PSSC). In SOSC, the product is pure service, such as
healthcare, while the product in PSSC is the combination of a
physical product and intangible service.

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 Service Design and Production Design

Difference:

Service design is an intangible aspect while product design is

tangible.

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 Service Design
Service design is the activity of planning and organizing people,
infrastructure, communication and material components of
a service in order to improve its quality and the interaction between
the service provider and its customers.
It is necessary to integrate, coordinate and collaborate the different
service operations performed in various organizations in order to
deliver the services at the highest level of customer satisfaction.
This integration can be done through a service supply chain, which
includes different players/organizations connected by a network of
activities.
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 Service Supply Chain (SSC)
Supply chain systems in which “Products” are pure services and
physical products do not play a Role :

▪ Telecommunications
▪ Internet Service
▪ Tourism
▪ Mobile app
▪ Ecommerce

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 Service Supply Chain - SSC (contd)
Physical Products together with significant service considerations

▪ Restaurant and Food

▪ Product Design
▪ Logistics Service providers
▪ Healthcare services
▪ Food Service providers

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 Structure of SSC
The structure of SSC has some similarities with the product supply
chain, as the services are created, purchased and transferred from
one element to another in a form of a chain. The structure of SSC is
a complex network, which combines direct or indirect service
providers around service integrator.

SSC’s basic architecture is professional service provider, service

integrator, the final consumer, and the chain members participate
in the entire process of service.

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