Wednesday, January 10, 2018

Explanation of Supply chains & the value delivery network

After producing a product or service , marketers try to make this product or service available to buyers requires building relationships not only the customers but also the key suppliers & resellers in the company's supply chain.

The supply chain consists of two partners ; one is upstream & another is downstream .
Upstream always done by company's suppliers who supply the raw materials, Components, parts, information, financed & expertise needed to create a product or service.
Traditionally,  marketers focused on the downstream side of the supply chain like marketing channels more appropriately distribution channels that look toward the customers.Wholesellers & retailers are the downstream marketing channel partners.They form a vital link btween the firm & it's customers.
The term supply chain considered as too limited beacause in the view of business it takes a make & sell.  It includes :-

■ raw materials;

■ productive inputs;

■ factory capacity .

This all serve the starting point for marketing planning.
Here, a better term found that's demand chain.Why should we call demand chain???
Because this chain suggests a sense & repond view of the market.

Under this view, marketing plan starts through :-

● identifying the needs of target customers;

● company should respond by organizing a chain of resources;

● the goal of creating customer value.

Demand chain also considered as too limited. Because it takes a step by step as like three linear view of purchase - production -consumption activities.

Now-a-days,  many last companies trying to building & managing complex & repeatedly evolving delivery network. Value delivery network is related to company suppliers distributors & finally customers. They partner with each other to improve their performance of the total system in delivering customer value.

For example:- " Yellow " a leading clothing brand always manage its suppliers  & dealers outside the company who work together  to give final customers an innovative design.


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