SCM 301 Essay

1319 WordsSep 18, 20146 Pages
Johnathan Anthony Mr. Jang SCM 301 10/1/13 Part 1 Exam 1.) Anticipatory and response-based business models are the two ways used by firms to fulfill customer requirements. The fundamental difference in the two models is timing. Anticipatory model has been the traditional business practice, which was mainly forecast driven. Since information about purchasing behavior was not available, and the channel partners were collaborating loosely, businesses were driven by forecasts. The forecasts used by the manufacturers, wholesales, distributors, and retailers were often different that led to a lot of excess inventory. All the work was performed in anticipation of future projections, so the likelihood of misgauging customer requirements…show more content…
Another difference is that the number of suppliers of a firm is generally less than the number of customers making the procurement cycle more direct. Manufacturing support performance cycles serve as the logistics of production. These functions maintain orderly and economic flow of materials and work-in-process inventory to support production schedules. The goal is to support manufacturing requirements in the most efficient manner. These are internal cycles to the firm, thus they are rarely affected by behavioral uncertainty. Customer accommodation performance cycles are those associated with processing & delivering customer orders. They link customers through timely & economical product availability. Physical distribution integrates marketing and manufacturing efforts. To improve the effectiveness forecast accuracy must improve to reduce uncertainty. 3.) Transactional marketing, in the perspective of luring the customer for a one off purchase, focuses strongly on price and short term benefits and product performance, with limited service. Relationship marketing is all about generating repeated sales and customer interactions, thus focusing on bringing value to the customer, and assuring long term performance and service, all aspects of quality become major concerns. Relationship marketing brings customer centricity to the spotlight. This vision has
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