Supply Chain Management Transportation cont Railroads Railroads have good capabilities they can haul virtually anything including incredibly hazardous materials Unfortunately the few carriers are distinguished by their limited service availability low accessibility long transit times and generally poor customer service Railroad are great for long distance large volume usually bulk shipments Recent intermodal capacities TOFC COFC take away some but not all of the drawbacks associated with rail shipping Transportation cont Supply Chain Management Air Cargo Air cargo services provide the fastest way to get anything anywhere Most anything can be transported virtually anywhere on the planet within 48 hours The speed and service of air transportation mean high costs Service is limited to airports so you must use another carrier s for remaining travel legs Usually reliable but can be affected by weather like trucking Air cargo is now an effective competitor to some forms of trans oceanic water based shipping Supply Chain Management Transportation cont Ship Barges etc Water based transportation is moving materials by barge boat ship etc over a sea ocean lake canal or river The cheapest of all the forms of transportation water based shipping is great for long distance low value high density cargoes or containerized shipping Available for both international and domestic shipping but slow transit times and accessibility make this a difficult option for many businesses Supply Chain Management Transportation cont Pipelines Pipelines are almost exclusively used to transport petroleum products exception coal slurries accounting for 56 of petroleum movements Pipeline investments are high but operating costs are relatively low Although accessibility is very limited liquid pipe mileage is approximately 160 000 miles per year Two major pipelines Trans Alaska and Colonial Supply Chain Management Transportation cont Colonial Pipeline It takes approximately 18 to 20 days for a barrel of product to travel the length of Colonial s system Packaging Supply Chain Management Packaging is an important supply chain function one that is tied closely to logistics efficiency and marketing often the root of conflicting goals Effective packaging from a supply chain perspective decreases costs increases productivity and provides the following Markets product Carries product identifications Provides product information Displays mandated product warnings information Protects product from damage and improves handling Puts product in manageable consumer size Marketing Supply Chain Management General Goods Business Model Inbound Outbound Procurement Orders Human Resources Customer Service Web Presence Revenues Suppliers Finance Accounting Information Systems Marketing Payments Advertising Customer Distribution Deliveries Warehousing Inv International Global Receiving QA Warehousing Inv Manufacturing Packaging Outbound QA Introduction Marketing Marketing is the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to satisfy customer s goals Over the decades marketing has gone through several eras to accommodate the changing requirements of customers From early America until the early 1900s marketing was focused on producing goods as quickly as possible Production Era Selling Era From the 1920s through the beginning of WW2 marketing philosophies turned to selling and advertising Marketing Concept Era After WW2 marketing faced the heavy competition associated with millions of new consumers Marketing evolves Introduction cont Marketing Customer Relationship Era Nowadays Customer Relationship Management CRM looks to learn as much as possible about customers using that information to better satisfy needs CRM includes such strategies as preferred customer programs targeted marketing etc CRM software is currently a hot seller Modern marketing management needs to be particularly in tune with the business environments global technological cultural competitive economic it s the very nature of the job QUIZ 2 spr12 Consumer Market Marketing The consumer essentially most everyone on the planet has enormous diversity in culture tastes etc No business can truly fulfill everyone s needs Dividing markets into similar groups is know as market segmentation Common segmentation strategies include Geographic Psychographic Demographic Benefit Volume Usage Once segmented a firm can focus on their target market be it niche mass market or relationship oriented http www claritas com MyBestSegments Default jsp ID 20 Business to Business Market Marketing The business to business market consists of selling to all those who wish to use your products and services in the production of other goods and services Marketing strategies differ from the traditional consumer base The market is much larger but the customers are fewer Many markets are concentrated in one geographic area Business to business sales are much more direct personal and involved Businesses tend to evaluate purchases over a much longer period of time versus a typical consumer Customer service is a higher priority in this arena Consumer Behavior Marketing Attempting to understand the consumer decision process is vital to marketing In general a five step process is often detailed 1 Problem Recognition 4 Purchase Decision 2 Information Search 3 Alternative Evaluation 5 Post Purchase Evaluation Cognitive Dissonance Consumer behaviors are closely studied especially influences such as psychological sociocultural and situational The marketing mix also know as the 4 Ps is considered by many to be the foundation of all marketing influences The Marketing Mix 4 Ps Marketing The marketing mix Product Price Place and Promotion is a convenient way to divide the core tenets of any marketing program Effective combination of these components should produce satisfying exchanges with a target market Developing selecting a product that consumers will purchase is the first step in the process CONTENT Marketing Marketing Mix Product New Product Development CONTENT Developing a new product is a difficult task Most products fail by not delivering what is promised poor positioning competitive market forces etc Over 80 fail in their first year The six basic steps in new product development include Idea Generation Ideas come from a variety of sources but most come from inside the company Development Creation of a complete product usually with several
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