Principle 4
Knowing the customers is significant to do business the easy way. In this modern day, knowledge is power and this knowledge is applicable to customers. The strategy to recognize the important value of customers is to apply the formula of knowledge and power effectively as possible. It is essential to understand the customers’ demographic, through this way, it is a sort of motivation for the customers to patronize the company. Part of the motivation is to gain the sense of the real drive behind the choice of buying the products. The approach is to define the choice and the issues that occurred. In addition, it is significant to determine the type of motivation to be able to meet the unspecified psychological necessity. If there are many options provided to the customers, it would create the feeling of confusion or not to be able to decide, and be overwhelmed. A thorough understanding of the customers and its necessity should be anticipated to enlighten or not, the significant point is to know the customer deeply.
The information obtained from the customer is the way to have a better position to move beyond the selling, and the relationship will be possibly embedded. A better understanding of the lives and objectives of the customers, the more their objectives are the company’s objectives, and to obtain a great possibility to help improve lives. The customer information is the focal point of attention, that is, to listen what the customer would say, watch what they perform, and encourage every person in the company to perform the same way the company do. Above all, is to be ethical; ethics that would specify the matters to make the lives of the customer, and it is tested that positive intentions always win in the business in the end.
Companies with avid customers for certain products or brands have a consistent assumption that their customers love the product, and it is true to every consumer. In addition, people believe that if it good to others, it is good to everyone. However, this is far from what is really true in the market; every product in the consumer markets has its diversity. The fact, that not all customers are created equal. The wants, desires, and needs of the people differ in slight and drastic manners.
Principle 10
The system is the considered as template to be laid over processes. Companies are that SCM is the only information system issue. On the contrary, there is no system or a computer package that exists in the modern time that overcomes a poor process. The fact that, process is a procedure; a step, rules, and some personnel are part of any task to be accomplished. The computer and communication device, software, and equipment that are brought to augment success of the processes are the system itself.
Particularly, in business, people obtained the backward direction and defined system before defining the process or system support. Commonly, the manifestation of the system is to develop systems regardless of adequate specifications of the process. Always make the tool fits the issue, and not the other way, and always utilize the tool in a right manner. In addition, the system should be communication devices, to enable good strategy and better result.
Principle 12
The platform for innovation and productivity improvement is an achievement. It provides useful starting point for any business because without strategic identification, the entire objectives would be useless. In addition, the creation and its management of critical project supply chains or key resources in the context of supply and demand of the economic system can reduce waste and bring key supply chains along the way. However, waste by any other name is still waste. For example, radioactive waste by any other name is still a waste. Logically speaking, a supply chain by any other name still works the same. The whole supply chain enables some transformations to take place culturally, operationally, and economically.
Many benefits can be achieve through SCM that includes reducing costs, improving responsiveness and ability to change, reducing uncertainty in cost savings, increasing service level, and facilitating the decision-making. The ability to deal with a range of elements such as quantity demands, variety of products, achievement of high service level, and account for uncertainty of suppliers and consumers is through a responsive supply chain.
Reference
London, K. (2013). A Supply Chain Management Self Assessment Framework for Waste
Minimisation for Residential Sector. Retrieved from http://mams.rmit.edu.au/fmowjbjqqw281.pdf.
Reinartz, W., & V., K. (2002, July 29). The Mismanagement of Customer Loyalty - Not All
Customers Are Created Equal. Retrieved from http://hbswk.hbs.edu/archive/3028.html.
Thomas, C. (2003, October 3). There's Plenty of Iraqi oil to pay the price of freedom. pp. 6-7.
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Turn. (2013). 5 Ways to know your customers better. Retrieved from
http://www.turn.com/sites/default/files/5_Ways_to_Know_Your_Customers_Better.pdf.
