Value Chain ManagementEssay Preview: Value Chain ManagementReport this essayVALUE CHAIN MANAGEMENTAND THECONSUMER PRODUCTS INDUSTRYCHAPTER 1 – INTRODUCTIONBackgroundValue chain management applies to business-to-business commerce, but in todays modern day market places, it is seen that consumers are not taken into consideration under three circumstances: when manufacturing a product, the service experienced at a retail store, or what values a consumer relates the product towards, and guarantee a return purchase. The business-to-business value chain management has grown into a business-to-consumer management. In all cases management chains must be integrated and operate in a seamless manner, but must also be made to order to specific consumer requirements.
1. How Value Chain Management Works and how it is developed- Value chain management is an integral part of the enterprise and its management. They are often a very important part of the business as well. One such advantage of a Valuechain Management method of action is that it makes it the most versatile solution for all aspects of the enterprise. 2. Value chain management is an excellent way of improving your organization. And because Value Chain Management works and the business is managed in the best possible way, they add value, enhance efficiency, create an economy of scale and efficiency, make products far more appealing, reduce the size of firms and the number of problems that result from management of the entire enterprise, save money and help you become one of the most profitable businesses you can be. This is especially the case with Value chains that are run in the same enterprise, where many of the product needs, such as quality assurance, are met directly at the consumer and a more important business needs, such as logistics, shipping, transportation. The cost savings can be huge. The benefit can be greater than the cost, as well as much less than the costs of an industry that processes them. Value Chain Management also has a more sophisticated approach, which is the business-to-consumer model. In this way it integrates management features and approaches that are developed in different business environments (e.g., real time order management, automated services) and helps you to make the business more appealing. 3. What can your company look after and do with Values chains when it is in crisis? In the last paragraph we’ll cover the many different ways these value based solutions are used and when they are needed. 2.1. Processed Orders and Value Chains Processed orders and value chains are often part of traditional organizations and as such they are often more costly and time consuming than one would think. In most cases this is due to the customer having to deal with a larger group of people as opposed to a few. The processes used in these processes can be simplified and cost savings are made, so that you save money on these different processes and also benefit from the savings. These processes are referred to as Value Chain Management Methods. This is the most efficient way to start a business and also does not use the processes that are not appropriate for a normal business. In the following sections I will show how to create Value chains for simple office business that are able to use all these processes and use them on many different business models. 4. How value chains work in a business-to-consumer world Value chains are usually the best or least costly option for a typical business. However, these business models sometimes are not suitable for business-to-consumer situations. Therefore we need to talk about how Value chains work in two specific ways. Value chains can often be used for customer service. This gives you good cost reductions with no disruption for your business. It can be used when you are running a business where most of your customers can find the Service that they need. These can also be used for things like product design, sales and distribution
1. How Value Chain Management Works and how it is developed- Value chain management is an integral part of the enterprise and its management. They are often a very important part of the business as well. One such advantage of a Valuechain Management method of action is that it makes it the most versatile solution for all aspects of the enterprise. 2. Value chain management is an excellent way of improving your organization. And because Value Chain Management works and the business is managed in the best possible way, they add value, enhance efficiency, create an economy of scale and efficiency, make products far more appealing, reduce the size of firms and the number of problems that result from management of the entire enterprise, save money and help you become one of the most profitable businesses you can be. This is especially the case with Value chains that are run in the same enterprise, where many of the product needs, such as quality assurance, are met directly at the consumer and a more important business needs, such as logistics, shipping, transportation. The cost savings can be huge. The benefit can be greater than the cost, as well as much less than the costs of an industry that processes them. Value Chain Management also has a more sophisticated approach, which is the business-to-consumer model. In this way it integrates management features and approaches that are developed in different business environments (e.g., real time order management, automated services) and helps you to make the business more appealing. 3. What can your company look after and do with Values chains when it is in crisis? In the last paragraph we’ll cover the many different ways these value based solutions are used and when they are needed. 2.1. Processed Orders and Value Chains Processed orders and value chains are often part of traditional organizations and as such they are often more costly and time consuming than one would think. In most cases this is due to the customer having to deal with a larger group of people as opposed to a few. The processes used in these processes can be simplified and cost savings are made, so that you save money on these different processes and also benefit from the savings. These processes are referred to as Value Chain Management Methods. This is the most efficient way to start a business and also does not use the processes that are not appropriate for a normal business. In the following sections I will show how to create Value chains for simple office business that are able to use all these processes and use them on many different business models. 4. How value chains work in a business-to-consumer world Value chains are usually the best or least costly option for a typical business. However, these business models sometimes are not suitable for business-to-consumer situations. Therefore we need to talk about how Value chains work in two specific ways. Value chains can often be used for customer service. This gives you good cost reductions with no disruption for your business. It can be used when you are running a business where most of your customers can find the Service that they need. These can also be used for things like product design, sales and distribution
Statement of PurposeThis paper will analyze the impact of value chain management on retail customer relationships, consumer values, and manufacturer relationships. The report will discuss how management works in these factors by implementing strategies that include the consumers attitude, giving the retailers sufficient product knowledge, and building the product to customize. Companies use the Internet which studies show how to sell the product, where and to whom. All these factors will produce a profitable, customized and focused company who meets the wants and demands of their consumers.
ScopeThe report will discuss how companies notice customer values and know what techniques are used to create a correlation from the buyer to the product. Management from retailers must implement customer service and order inventory to ensure a full stock. Manufacturers seek customer relationship by eliminating the middle man (retailer) and selling via internet. Researching finds new trends seen in the market and the manufactures therefore create to customize to the consumer. I will not discuss any Internet software programs being used among the mentioned companies involved.
LimitationsThe amount of time allocated for the research paper due to the 6-week time frame. No primary research was used in this paper.Methods of ResearchThe method of research for this paper is secondary research. Reference sources include: ProQuest and Emerald located at the John F. Kennedy Memorial Library at California State University, Los Angeles.
CHAPTER 2 – FINDINGSRetail Consumer RelationshipEmployees must keep the motto of “the customer is always right,” When emotions are involved employees must shine to implement the stores message because even if the product may be/look nice in the marketing campaign, if the employees cant deliver it wont matter. “When employees fully understand the parameters they operate in and can trust their employers to stand by these criteria, then they become endowed with a self-confidence thats quite liberating the employee can act to solve the customers problem then and there.” (Gordon, 19) Customer service creates value in sales and sales create the supply and demand in consumer products. Retailing is basically the final link between the production and the goods and the end consumer.
Traditionally, the role of the retailer has not always been recognized or appreciated. “At its simplest, the retailers function is to buy goods in anticipation of consumer demand, collect and store these and make them available when required.” (Runciman, 49) Inventory for a retailer is primary towards a sale. Kurt Salmon Associates were commissioned to conduct a supply chain analysis. The results of the study showed the delivery time for the apparel supply chain, from raw material to consumer, was 66 weeks long, 40 weeks of which were spent in warehouses or in transit. The long supply chain resulted in major losses to the industry due to financing the inventory and lack of the right product in the right place at the right time.
Consumer valuesWhat is it that makes consumer purchase? “Consumers are interested in a wide variety of products and they want immediate gratification and convenience. Those needs lead to a supply chain that must be very efficient.” (Hill, 38) Companies now think from the consumer up, rather than form the factory down. Levis presents shoppers with customization services such as 3-D body scanning, laser etching, hand painting, fabric ornamentation and embroidery, and shrink-to-fit. The marketing teams at many corporations have to know the updates on current trends and hot picks of the season. Items like these can not be mass manufactured because each person is individual and tends to work on pull system, where each item is pulled when needed.
Manufacturer consumer relationshipThe technology of today needs to be feasible to all customers, for example: e-commerce. Technology is the simplest solution to an accurate supply and demand on inventory. The adoption of UPC codes and point of sale (POS) help in store inventory, but the e-commerce strategize to minimum lead times, resulting in minimum inventory levels throughout the pipeline. With the use of the internet, product requirements and specifications can be distributed from the buyers to manufacturers in a real-time fashion.
The internet creates a more knowledgeable consumer with a lot more choices and