B2B chapter 11 supply chain management + 13 advertising + 14

critical processes of scm

CRM, SRM (suppliers), customer service management, demand management, order fulfillment, manufacturing flow management, product development and commercialization, returns management

non personal components

advertising, catalogs, internet presence, trade shows, promotional spending (personal selling closes deals!)

logistical systems

almost no decisions can be made without evaluating the effects upon other areas. Linkages determine how quickly companies can get their product from production to market. Poor performance on any members part can result in extra cost, higher inventories or even lost customers

objective task method

approach to allocating advertising costs is to relate it to advertising objectives. This focuses on the communications effect of advertising, Objectives established in terms of sales volume, market share, profit contribution and market segments

logistical integration

are important to improve communications and software technology, expand globally, more attention to quality, change the face of inter firm relationships

effective ads

are logical, rational, provide a clear description of the product, present the benefits clearly, details product quality and provides performance measures

cost of personal selling

average cost of making a sales call is $200+, significant investment in utilizing this method in the marketing mix.

social media

b2b communicates across key platforms- discussion forums, blogs, wiki. social networks- monitor what prospects are saying, capture interest from prospects looking for products, coordinate follow up to social media interactions

trade shows

benefits: customers get hand on experience with product in a one on one selling situation, enhance goodwill, benefits from free publicity, allows competitors to look at each other. Objectives- discover decision influencers, identify potential customers, provide company products, service and info. Discover product application problems, create sales, handle problems, build corporate image, enhance sales force morale. Sell the product, then the company and finally the salesperson.

enhancing sales effectiveness

combining advertising and personal selling is the most efficient. Does this by serving as a reminder and informing the market about new product/developments

innovative supply chains

connect inventory management to financial movements to open doors to greater end to end cost savings, have better balance sheets, lower total costs, have higher marines, more stability to supply chain

trade off

considers effects of costs vs efficiency at all levels within the logistical system. Assume a change at one stage will affect another.

what advertising cannot do

create product preference for many products, close a sale, substitute for personal selling, supplement personal selling but not replace it

controllable elements in logistics system

customer service, order processing, logistics communication, transportation, warehousing, inventory control, packaging, materials handling, production planning and plant and warehouse location

elements of logistical service

delivery time, delivery reliability, order accuracy, information access, damage, ease of doing business, value added services

inventory levels

depend upon customer requirements, costs, investment, service required and anticipated revenue

total cost of ownership tco

determines total cost of acquiring and using an item from a particular supplier. identifies costs (often buried in overhead/general expenses) that related to holding, poor quality and/or delivery failure.

decision stages

developing b2b advertising program by: setting objectives and defining target market, determining advertising budget, developing the message, selecting the media, evaluating effectiveness

sales training skills

effective interpersonal communication skills include communication, listening, influencing, complaint handling and cultural diversity skills. Training increases productivity and decreases turnover.

interactive market includes

email acknowledgements, order entry, order fulfillment, money exchanges, follow up contact, q and q service and troubleshooting

supply chain management scm

encompasses the planning and management of all activities in sourcing and procurement, conversion and logistics. It integrates supply and demand across companies.

outbound physical distribution

flows that deliver completed products to customers and channel intermediaries

inbound physical supply

flows that provide raw materials, components and supplies to the production processes

work environment

for a satisfying job: must know what is expected, is not subjected to conflicting demands they cannot resolve, not surrounded by uncertainty due to lack of info concerning expectations.

supervision

functions include- continued training, counseling, assistance, time management verification and setting financial and activity quotas. Integrates activities with upper management.

functional products

have predictable demand patter, goal is to design an efficient physical distribution system that minimizes logistics and lowers inventory costs, efficiency means developing systems that effectively coordinate manufacturing, ordering and delivering while minimizing production and inventory costs

successful scm programs

improve overall company performance by revenue enhancement and cost reduction. Focus on integrating critical processes to enhance flow, lower costs and increase profits.

personal selling

in b2b it is the dominant component and a major determinant of overall company success. This is because dollar purchases are larger, products are more technical.

logistic product flows

inbound (physical supply) and outbound (physical distribution)

evaluation measures

include knowledge, recognition, recall, awareness, preference, motivation

innovative products

include software, wireless products, other high tech things. Less predictable, demand, short life cycles, focus on having enough inventory to meet demand asap.

customer decision journey cdj

includes two critical steps- inspiration and sharing. It includes everything from social media to meetings with sales. Social media facilitate targeted, personalized contact across the customer experience landscape.

job satisfaction

increases when: people perceive that supervisors closely direct and monitor performance. Management provides assistance to resolve unusual problems, feel they have an active part in determining policies and standards and there is a good relationship between management.

integrated communication program

intertwining : advertising, sales promotion, online media, public relations and personal selling (personal selling is the most important in b2b

scm competitive advantage

is accomplished by integrating scm into all phases of operations including design, sourcing, manufacturing and distribution. It reduces costs and increases revenues.

salesperson

is the most important component and the primary communications vehicle for selling because of product complexities, small number of buyers, high price or products/services and extensive negotiation process.

scm determinants

is the nature of demand for the product functional or innovative?

strategic role of logistics

its function was to deliver higher productivity, today it is a critical weapon against competition for delivering products to the market in as efficient and effective way that offers customers value resulting in loyal customers and more profitability

successful scm demands

joint planning and communications. Accomplished through setting up teams that cut across functional and company boundaries to manage the movement of goods through the supply chain. Long term commitment and interwoven relationships.

3 major areas of logistics

logistical facilities, transportation and inventory considerations

delivery and responsiveness

logistical service relates to the availability and delivery of products to the customer. Responsive logistical service advances customer satisfaction and develops buyer seller relationships. Effective logistics reduces inventory, thus saving costs, consistent delivery leads to dependencies which leads to repeat business.

b2b logistical service

logistics is a service similar to quality and is used by customers to measure performance. When quality between competitors and price are the same, the next determinant may be logistical speed, translates into product availability

financial benefits

lower costs, higher profits, enhanced cash flow, revenue growth, higher rates of return on assets

sales management

means planning, organizing, directing and controlling the personal selling efforts. Involves: estimating forecasts, size of sales force, training, deploying, motivating and monitoring sales efforts for problems and effectiveness.

performance variables in logistics

measurements to be considered- total distribution costs and level of logistical services provided to customers. Balancing act of reducing distribution cost and providing good services. Total cost or trade off method

scm focus

monitoring actual user demand rather than forcing products into the market that may not sell quickly. Goal is to minimize flow of raw material, finished products and packaging material thus minimizing inventory throughout the entire supply chain.

advertising objectives

must be realistic, measurable and specific. To create awareness, provide information, influence attitudes, remind buyers about product and company

supply chain partners

need to clearly define strategic objectives, understand where objectives diverge and work together to resolve any differences. performance metrics can be established to track its goals once a supply chain is established. Metrics must measure performance and are tied to a financial system that rewards each participant fairly.

cooperation

not supply chains if there is any form of adversarial relationship. Participants need to work in a partnering way. highly effective supply chain feature integrated operations across participants, share info in a timely fashion and add value to the customer.

eliminate inventory

objective of total quality management and jit principles. Inefficiencies in the system results in excess or shortfalls of inventory. Better forecasting, improved delivery and zero manufacturing defects, the possibility to eliminate the need for inventory is possible, especially due to certain advances

successful programs

objectives, assignments and implementation procedures are well defined. Senior management support, staffed by experienced people knowledgeable about company's capabilities and the staff know how to create customer solutions.

critical ingredient for successful scm

partnerships enhance the ability to compete in a global economy through increased efficiency but it requires trust. Sharing of sensitive and proprietary information on customers, actual demand, point of sales transactions and corporate strategy

inputs of scm

raw materials suppliers, producers, wholesalers, retailers, ultimate consumers. Also- warehousing, transportation, information processing and materials handling

consequence of jit

reduction of suppliers to preferred supplier status (relationships). this preferred supplier status see their business grow tremendously

logistics

refers to designing and managing necessary activities centered around transportation, inventory, warehousing and communications to make materials available for manufacturing and ultimately to consumers.

customer prioritization

research suggests that companies can get higher returns and profitability by segmenting customers into tiered groups from high to low and develop different value propositions for each tier. This reduces sales and marketing costs

account management process

responsible for diagnosing customer needs, identifying matching set of internal experts and recruiting experts onto ad hoc team as customer or opportunities require. They assemble the right people and information to solve problems. Excel at building and maintaining strong relationships and use them to design and align proposals that meet solutions and problems.

scm drivers

scm efficiency and effectiveness is made possible through powerful information systems, internet technology and supply chain software

just in time jit

system that originally applied to moving inventory through the production process. The objective is to get the right part to the right place at the right time in perfect condition (zero defects). The purpose is to relate production to purchase. If 100 units re expected to be purchased, 100 units are produced

evaluating ads

target market coverage, key buying motives, effectiveness of messages, media effectiveness, overall results. Strategist must determine- what is to be measured, how to measure it and in what sequence.

abc costing

technique used to measure costs of performing specific activities and trade those costs to products, customers and channels that consume the activity and ultimately the customer demanding certain services. End result- charge him extra for the service, have him increase inventory to economic feasibility or drop as a customer.

scm benefits

the ultimate consumer and all customers within the supply chain

advertising's role

to be an integral part of an integrated communication program, enhance sales effectiveness, increase sales efficiency, create awareness, create preferences for company, products, etc. Facilitate interactive marketing communications

behavior based performance measures

use subjective measures to evaluate performance like application of product and company technology knowledge and quality of customer relationships (more salary driven compensation). This approach is good for those who lack experience, companies need to control how their products are presented and when salespeople are asked to perform non sales activities.

transportation

usually the most expensive part of the logistic process. Cost speed, reliability and capability need to be considered when making the choice. Carrier performance improved when they were involved in buyer and seller relationships. Balance of service, variable costs, investment required and speed of ordinary cs expedited orders

goals of scm

waste reduction, time compression, flexible response, unit cost reduction