Marketing 333
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Marketing 333. Chapter 14 Supply Chain Management. A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value. Supply Chain.

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Marketing 333

Marketing 333

Chapter 14

Supply Chain Management

Supply chain management

A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

Supply Chain

Supply Chain Management

Supply chain integration



The ability of two or more companies to develop social connections that serve to guide their interactions when working together.



When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which firms are the followers, and which responsibilities are assigned to each firm.

Supply Chain Integration

Measurement integration



Measurement Integration

The performance assessment of the supply chain as a whole that also holds each individual firm or business unit accountable for meeting its own goals

An accounting method used in measurement integration to assess the costs associated with each supply chain activity


costing (ABC)

Technology and planning integration

Technology and Planning Integration

The creation and maintenance of information technology systems that connect managers across and through the firms in the supply chain

Technology and planning integration

Material and service supplier integration

Material and Service Supplier Integration

  • Firms should link seamlessly to those outsiders that provide goods and services to them.

Internal operations integration

Internal Operations Integration

Links internally performed work into a seamless process that stretches across departmental and/or functional boundaries, with the goal of satisfying customer requirements

Internal Operations Integration

Customer integration



Customer Integration

A competency that enables firms to offer long-lasting, distinctive, value-added offerings to those customers who represent the greatest value to the firm or

supply chain

The supply-chain process whereby customers are placed into groups A, B, and C according to their overall long-term value to the firm and to the extent to which the firm can serve their desires

ABC Segmentation

Customer relationship management

The prioritization of a firm’s marketing focus on different customer groups according to each group’s long-term value to the company or supply chain; designed to identify and build relationships with good customers.





Customer Relationship Management

Customer service management





Customer Service Management

A multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong.

Demand management

The alignment of supply and demand throughout the supply chain to anticipate customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior.




Demand Management

Order fulfillment

A supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders.

Order Fulfillment


Order Fulfillment

Manufacturing flow management





A process that ensures that firms in the supply chain have the resources they need

Manufacturing Flow Management

Supplier relationship management

A supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers





Supplier Relationship Management

Product development and commercialization

The group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.


Development and



Product Development and Commercialization

Returns management

A process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the value of the returned assets to the firms in the supply chain.




Returns Management

Supply chain strategies

The strategy that focuses primarily on the removal of waste from the supply chain to achieve the lowest total cost to the members of the supply chain system

Lean Supply



Agile Supply

Chain Management

Supply Chain Strategies

The supply chain strategy

that focuses primarily on

the ability of the firm to fulfill

customer demand, even if this

means somewhat higher costs

Lean versus agile supply chain management

Lean versus Agile Supply Chain Management

Mapping the supply chain

Mapping The Supply Chain

Logistical components of the supply chain

Sourcing & Procurement

Order Processing


Inventory Control

Logistics Information System

Warehouse & Materials Handling


Logistical Components of the Supply Chain

Trends in supply chain management

Advanced computer technology

Outsourcing of logistics functions

Electronic distribution

Trends in Supply Chain Management

Globalization of supply chain management

Outsourcing of logistics functions

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