SCM-chapter2.ppt

1、Chapter 2 Putting the end-customer first,The Marketing Perspective,A more current definition: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Ameri

2、can Marketing Association, July 2013),Supply chain,marketing,Rising customer expectation,Due to: Better levels of general education Better ability to discern between alternative products Exposure to more lifestyle issues in the media,The information revolution,B2C B2B Other supply chain implications

3、 (inventory, forecasts, use of assets etc.),Demand led Respond more rapidly to markets requirements,Segmentation,Segmentation describes how a given market might be broken up into different groups of customers with similar needs. It means describing the market as simply as possible whilst doing our b

4、est to emphasise its variety. (Millier and Palmer, 2000),Market segmentation,Begins with: the benefits wanted the price consumers are prepared to pay the media to which they are exposed the amount and timing of their purchases (ex. for suncreen cream and lotion ),Many ways for market segmentation,De

5、mographic Geographic Technical Behavioural (for convenience stores: Main, top-up, impulse, distress, grab-and-go, habitual shoppers) (Finne and Sivonen, 2009),Important characteristics of segments,measurable economically viable accessible actionable,Refer to Figure 2.1,After segmentation, select tar

6、get segments and define differential advantages Order winning criteria (OWC) Qualifying criteria (QC),Define marketing mix (4 Ps) product price promotion place,Segmentation and Logistics?,Case study 2.1 (P.46),Group discussion,Markets segmentation and supply chain strategy,Product and service segmen

7、tation Demographic segmentation Geography Channel Case study 2.2 (P.49),Demand profiling,Marketing - abstract Logistics - day-to-day realities,Demand uncertainty,Actual demand and forecast,Service quality,Gaps,Customer loyalty,satisfaction Benefits: generate long-term revenue streams tend to buy mor

8、e than new customers tend to increase spending over time may be willing to pay premium prices provide cost savings compared with attracting new customers,loyalty,Key drivers of customer loyalty,Service quality,Perceived value,Price,Product quality,Customer loyalty,Figure 2.5,Figure 2.8 Matching supp

9、ly chains with products Source: Fisher, 1997,Segmented supply chain strategy,Do you agree? Any problems?,So, how to develop segmented supply chain strategy?,Figure 2.9 Tension between supply chain and marketing objectives,Supply chain and marketing alignment,How to resolve the conflict?,Some approac

10、hes:,Promote integrative behaviours between marketing and SC Employ a sales and operations planning (S&OP) process Develop and implement segmented supply chain strategy,Figure 2.10 Strategy drivers and their implications for supply chain strategy,Supply chain strategy drivers,Customer B/Jaguar Unpre

11、dictable demand, lower volume, more customised,Customer A/BMW High volume, short lead time, high delivery frequency,Demand variety,Demand variability,Demand unpredictability,Demand volume,Delivery reliability,Order lead time,Product quality,Delivery frequency,Product customisation,Product innovation

12、,L,L,L,H,L,L*,L,H,L,L,Core drivers,Context specific,18 SKU,More Efficient,More Responsive,Approx. average for focal company,9 SKU,100%,1 car,17,760,4,524,24 day,1 day,3 cars,1/2 per week,4/5 per week,25 PPM,H = high L = low S = short L* = long,Figure 2.11 Supply chain strategy driver profiles for tw

13、o customers of Autoco Source: Harrison et al., 2007,Select drivers for segmentation,Other important factors,Marketing activity Context of purchase Product life cycle stage,Using customer value gap analysis for driver selection,An example: Customer value is assessed by a administered questionnaire re

14、lative importance (by 100 points across the driver) performance is identified by the customers (measured on a 105 Likert scale),Figure 2.13 Customer value gap as perceived by Autocos customer during product launch and steady state,Product launch,Autoco,perceived as providing,lower value on order,lea

15、dtime,and,delivery reliability than competitor,Steady State,Autoco perceived as providing,superior or equal value to competitor,on all aspects except quality,4-step approach for segmented supply chain strategy,Identify the customer demand signal to which the supply chain will respond. Conduct a dema

16、nd profiling analysis using demand volume and variability. Identify the key supply chain segments. Develop tailored practices for each of the supply chain functions involved.,Case Study 2.5 Segmented supply chain strategy process at Kimberly-Clark Europe,Figure 2.14 The simplified end-to-end supply

17、chain for K-C Europe,Figure 2.15 Analysis of demand volume and variability for SKUs in K-C Europe, Consumer Products,Figure 2.16 Four segments defined by K-C Europe,Segmented SC strategy at aEuropean level and across marketing and supply chain functions for consumer goods,Kimberly-Clark,Personal car

18、e products sold in 175 countries 100s of products in 1000s of variants,Step 1: Identify customer demand signal,Forests,Pulping facility,K-C Europe operations (plan, buy, make & deliver),Distributor,Retailer,Consumer,Scope of the arc of integration,Simplified end-to-end supply chain for K-C Europe (v

19、alue chain),2 possible CODPs,High volume commoditised Invest in many manufacturing plants Manufactured local to market,Low volume specialised products Invest few manufacturing plants Manufactured centrally,Primary customer,Step 2: Conduct a demand profiling analysis,Volume,Volatility (variability),5

20、0:50 split variability,80:20 Pareto volume split,For consumer products,Step 3: Identify the key supply chain segments,Volume,Volatility (variability),Step 4: Develop tailored practices,-ve: Promotions at product range level & segmentation at SKU level,-ve: Low volume noise manufactured centrally so

21、CODP in distribution after manufacture cant MTO,-ve: Procurement cannot be segmented at finished SKU level because procure at material level,+ve: Marketing used segmentation to drive SKU rationalisation and product range expansion,+ve: Planning used segmentation to drive forecasting approach statistical for low