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Supply Chain Management

by Max Bellamy

By offering merely one's own products through a network of one's own outlets, no firm, especially a consumer product firm, can properly meet its customer's needs. Nor would it be feasible for any given firm to enter into the distribution of all the other products, which may be required by customers. Supply chains render the vital service of assembling the products of different manufacturers into suitable assortments. They also break the bulk and meet the small-size needs of individual consumers.

Supply chains also provide the vital input of salesmanship. In particular, they assist in establishing new products in the market. Dealer recommended selling is common in many consumer products. The dealer promotes the products through word-of-mouth communication. They also provide pre-sale and after-sale services to consumers. In addition, they provide market intelligence and feedback to their principals. The channels are in a position to do this authentically, since they are in constant and direct contact with customers, and are feeling the pulse of the market all the time.

Merchandizing is another important function performed by supply chains. Through merchandizing, supply chains help reinforce the awareness about the product among the customers. When a customer visits a retail shop, his attention can be allured by an attractive display of a new product or brand, increasing his awareness of and interest in the product. The merchandizing activities, which include displays, complement the selling efforts of the company and act as a silent salesman at the retail outlet.

Supply chains also help implement the price mechanism in the market; they assist in arriving at the price level that is acceptable to the maker as well as the user. This is very vital for the consummation of the marketing process. And in several cases, without the active role of these chains, it would be very difficult to accomplish this requirement.

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