Question

Which of the following statements is true of today's marketplace?

	a.	Companies that focus on supply chain management commonly report high inventory costs.
	b.	Supply chain management reflects a completely employee-driven management philosophy.
	c.	Standardized products are "pushed" down through marketing channels to consumers.
	d.	Businesses focus on partnering with members of the supply chain to enhance customer value.

Answer 1

The correct answer is option d.

Supply chain refers to the movement of goods from manufacturers to warehousing which is then transported to the customers. It is very important for managers to focus on improving supply chain profitability or by reducing the supply chain cost to make the supply chain management system effective. The goals of supply chain management include: -

• The inventories should be produced and distributed in the right quantities
• The inventories should be distributed to the right location
• The inventories should be distributed at the right time.
• Maintaining long term relationships with the suppliers.
• To minimize the total cost
• To fulfill customer service requirements.

Growth of customer value is the best marketing goal for any company. It depends on customer’s perception about a product or services, what they buy and what they don’t want to buy. It also depends on the offering by the marketers. So, the company focus on maintaining its value chain by continuously improving the value of the product they offer to the customers.