According to Mentzer, supply chain management is the follow-up process that an organization has regarding the production to the marketing of a product or service (Mentzer 2001). This process revolves around the transformation, movement, and storage of inputs and outputs in the production process. The overall aim of supply chain management is to build a competitive network and create a cohesive relationship between demands and supply in an attempt to measure performance.
In a highly globalized IT segment, different organizations use different supply chain management techniques to initiate strategic coordination and link the various production and marketing techniques to ensure consumer satisfaction. As found out by Singh, the process should be in line with global changes in demand and supply as well as changes in technology (Singh 2004). This adds value as well as reduces the cost incurred in production.
Dell Computer Corporation was founded in 1984 as a company dealing in computer systems. Dell Inc. initiated a marketing technique that sold products directly to consumers. The company uses this technique meaning that the company’s products go through a shorter supply channel that is from the supplier, the manufacturer that is the company, and finally the consumers. This direct selling technique helps the company identify different market segments, analyze how profitable is a marketing segment and be able to develop accurate demand forecasts.
The customers of Dell order the company’s products either through the phone or over the internet. The company’s strategy is to provide cost-efficient but high-quality products that are delivered within the stipulated time frame. Dell Company does not incur the cost of intermediaries in the process of distribution of its products. This also helps the company save on time in processing orders. According to Klein, using this strategy, the company can identify current market trends and plan on future marketing strategies that help the company improve its supply chain management (Klein 2007).
In the early eighties, Walmart came up with strategies that saw the company implement tight supply chains solutions that helped the company become a leading player in the financial sector. Wall marts supply chain management is technology-oriented. This has helped the company overcome some of the supply chain management barriers that economists thought would be rather hard to break. Walmart through its supply chain management strategy can maintain low levels of inventory and still be able to meet consumer demand.
Wall Marts Company reaps the benefit of its superior supply chain management in that it establishes a competitive advantage over its competitors. The traditional labor and paper approach used by many companies today has been rendered ineffective due to the global changes in demand and supply. Wall mart’s superior supply chain management helps the company incur an oversupply of fad items thus all the company’s resources are well accounted for.
Both of these supply chain management techniques are bound to change. This is because of the global market factors that affect supply and demand. According to Keller, the consumers of today are highly dynamic and are the driving factors of the market success of any organization(Keller 2007). It is therefore essential for all profit-oriented organizations to adjust their supply chain management to suit the customers. The business benefits from changes in the supply chain management techniques in that they can identify current market trends hence can predict an increase or decrease in demand.
References
Keller, K.L. (2007), Marketing Management, New York: Grada Publishing.
Klein, G. (2007) Strategic Marketing, New York: GRIN Verlag.
Mentzer, J.T. (2001), Supply Chain Management, New York: SAGE.
Singh, S. (2004), Market Orientation, Culture and Business Performance, New York: Ashgate Publishing.