Page 29 - Journal of Strategic Marketing Magazine - January 2019
P. 29
SUPPLY CHAIN MANAGMENT
Stage in the PLC Marketing’s key roles Logistics’ key roles
New product Need identiication. The key focus is on planning to meet the product’s
development Market research and demand forecasting. launch time and ‘hitting the market window’ on time.
Product development.
Strategy and tactics.
Commercialisation Promotion to create (if needed) a category The supply chain should already be established, and
(market need and especially brand awareness. must be regularly assessed to ensure processes are
introduction) Thereafter stimulation of product trial and, if tuned and scalable for the growth stage ahead.
possible, retrial.
Growth The organisation could beneit from Through logistics optimisation, organisations can
economies of scale at this point. realise the best possible customer satisfaction
Because competitors see the viability of the alongside growing sales volume. Real-time SCM
market, they will enter it most often based analytics and reporting help make this stage
upon a parity pricing strategy. successful.
Maturation The organisation’s products are well The organisation should address its need for
entrenched in the market and the key aim is warehouse space, and reduce/revisit the procurement
to retain market share and even increase it as of inputs, the handling of materials, packaging,
competitors bale out of the market because warehouse management, inventory management,
of market pressure. order logistics, communication, customer service and
reverse logistics.
Decline and The organisation might manipulate the four In the inal stage, the product’s price has likely
deceleration Ps to lengthen the PLC, although at this stage dropped, and sales are slowing with the decrease in
it could be too late to rejuvenate the product demand. Organisations must ensure the supply chain
or brand. is tuned to balance the lagging price and sales with
Some organisations use this stage to renew the chance to continue to proit.
the marketing particularly if there is demand
as a result of competitors leaving the market.
Product demise The removal of the offering from the product Reverse logistics (handling of unsold returns). Waste
portfolio. disposal for either re-use, recycling or investment
recovery.
costs and, where possible, bring in an
additional income stream in the form of
investment recovery by means of the
disposing of dead stock and effective
waste management.
The key to realising these savings,
as well as exceeding customer
expectations, is to recognise the
relationship between the supply
chain, business logistics, marketing
and the PLC. This will provide a better
understanding of the business and if
used correctly, it can be used in combat Dr Beverley Waugh has been Dr Myles Wakeham is a
involved in transport, distribution,
motivated and well-connected
with business adversaries as a result of logistics and supply chain academic and businessman
a competitive advantage. management since the early who was instrumental in
In the same way, lead time 1990s, irst in the construction introducing and adopting
management, in the form of the order- sector, then the maritime sector CIPS at CPUT as a series of
and later speciically in transport
qualiications. He has consulted
to-delivery cycle and the cash-to-cash and warehousing. Her interest to a variety of institutions and
cycle, will reduce the time it takes to in logistics and supply chain organisations, such as the South
satisfy customer needs and likewise the management was sparked by African National Treasury and
time it takes an organisation to convert the impact of logistics, from national, provincial and local
government. He is also involved
a cost and customer service
an order into cash. Both forms of lead perspective, on the proitability of in international research, and
time management will provide the organisations and the economy with an academic consortium has
organisation, compared to slower rivals, overall. researched the impact of IT on
with a competitive advantage. university education.
Strategic Marketing - p27
Stage in the PLC Marketing’s key roles Logistics’ key roles
New product Need identiication. The key focus is on planning to meet the product’s
development Market research and demand forecasting. launch time and ‘hitting the market window’ on time.
Product development.
Strategy and tactics.
Commercialisation Promotion to create (if needed) a category The supply chain should already be established, and
(market need and especially brand awareness. must be regularly assessed to ensure processes are
introduction) Thereafter stimulation of product trial and, if tuned and scalable for the growth stage ahead.
possible, retrial.
Growth The organisation could beneit from Through logistics optimisation, organisations can
economies of scale at this point. realise the best possible customer satisfaction
Because competitors see the viability of the alongside growing sales volume. Real-time SCM
market, they will enter it most often based analytics and reporting help make this stage
upon a parity pricing strategy. successful.
Maturation The organisation’s products are well The organisation should address its need for
entrenched in the market and the key aim is warehouse space, and reduce/revisit the procurement
to retain market share and even increase it as of inputs, the handling of materials, packaging,
competitors bale out of the market because warehouse management, inventory management,
of market pressure. order logistics, communication, customer service and
reverse logistics.
Decline and The organisation might manipulate the four In the inal stage, the product’s price has likely
deceleration Ps to lengthen the PLC, although at this stage dropped, and sales are slowing with the decrease in
it could be too late to rejuvenate the product demand. Organisations must ensure the supply chain
or brand. is tuned to balance the lagging price and sales with
Some organisations use this stage to renew the chance to continue to proit.
the marketing particularly if there is demand
as a result of competitors leaving the market.
Product demise The removal of the offering from the product Reverse logistics (handling of unsold returns). Waste
portfolio. disposal for either re-use, recycling or investment
recovery.
costs and, where possible, bring in an
additional income stream in the form of
investment recovery by means of the
disposing of dead stock and effective
waste management.
The key to realising these savings,
as well as exceeding customer
expectations, is to recognise the
relationship between the supply
chain, business logistics, marketing
and the PLC. This will provide a better
understanding of the business and if
used correctly, it can be used in combat Dr Beverley Waugh has been Dr Myles Wakeham is a
involved in transport, distribution,
motivated and well-connected
with business adversaries as a result of logistics and supply chain academic and businessman
a competitive advantage. management since the early who was instrumental in
In the same way, lead time 1990s, irst in the construction introducing and adopting
management, in the form of the order- sector, then the maritime sector CIPS at CPUT as a series of
and later speciically in transport
qualiications. He has consulted
to-delivery cycle and the cash-to-cash and warehousing. Her interest to a variety of institutions and
cycle, will reduce the time it takes to in logistics and supply chain organisations, such as the South
satisfy customer needs and likewise the management was sparked by African National Treasury and
time it takes an organisation to convert the impact of logistics, from national, provincial and local
government. He is also involved
a cost and customer service
an order into cash. Both forms of lead perspective, on the proitability of in international research, and
time management will provide the organisations and the economy with an academic consortium has
organisation, compared to slower rivals, overall. researched the impact of IT on
with a competitive advantage. university education.
Strategic Marketing - p27
