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Running head: Review #2 1
The School of, Liberty University
TITLE OF YOUR PAPER 2
Deshmukh, A. K., & Mohan, A. (2016). Modeling Demand Chain Management (DCM)
processes for Indian retailing. Journal of Supply Chain Management Systems, 5(2).
https://doi.org/10.21863/jscms/2016.5.2.027
Statement of author’s purpose
In this article, the author attempts to inform readers about the rapid speed of
technological innovation and its immediate effect on worldwide markets. The healthy
relationship between customers and suppliers depends on the manner of how fast these suppliers
can respond to customer needs before their competition does. Customer-centric marketing has
specifically become more prominent amongst businesses that are trying to put their customers as
priority rather than their product. Traditionally, business success relied primarily on your back
office production efficiency. This phenomena is understood through supply chain management.
Background
Increasing customization and product variability demand in today’s consumers is
evolving how various businesses across the global market conduct business with their clients and
competitors. In the race to be more competitive, firms need to enhance their market
responsiveness capabilities (Deshmukh, Mohan, 2016). A firm needs to understand the value
their product or services gives customers and how to continuously provide them that value as fast
as possible. Supply and demand chain management help us understand how to keep the value
chain between firms and their customers flowing effectively. The value chain is any form of
action that combines a firm’s supply with it’s demand. Through the analysis of the various stages
of the value chain, firms must innovate their own processes, internally and externally, to improve
overall efficiency. All in all, firms come to understand the relationship between value, supply
chain, and the demand chain.
Application of Supply Chain Management Theory
The belief that a customers’ needs are more basic than products or services places a
priority on fully understanding what drives market opportunities (Hill, 2021). Successful
businesses develop a well understanding of basic and complex customer needs so that their
products and or services can exceed expectations. One of America’s favorite fast food chains,
Chick-Fil-A, satisfies numerous essential customer needs and exceeds expectations by providing
value-added services. They serve customers fresh food at a rapid pace with the combination of
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innovative ideas and technology, mobile ordering with their online app and even in-person
supervision during peak drive thru times. The most basic customer service programs focus on
the operational aspects of logistics and ensuring the organization is capable of providing certain
rights to its customers (Hill, 2021). Customers who are usually pressed for time expect a service
to accommodate their need for haste. Starbucks is an example of an organization that adapted
their operations and strategy to better accommodate this customer need. The Starbucks’ loyalty
program gives members various discounts and offers to encourage repeat visits, as well as
offering in-store pickup and the ability to place online orders through their mobile app. Through
the app, members have access to the same grade of customization that they can find in-store,
they are fortunately given the choice to bypass waiting in a line and can pick up their order at
any given time scheduled. There are three things customer service consists of: availability,
operational performance, and service reliability. McDonalds is able to accomplish all three of
these highlights in today's modern society. With the incorporation of innovation, they increased
operational performance with the implementation of in-store kiosks that have the same
customization as the in-person experience, minus having to physically tell the cashier your order.
During the pandemic this value added service is key to meeting the needs of customers who want
to reduce their possible exposure to COVID-19. This service is reliable during peak rush hours
and is available for usage during full business hours.
Managerial Implications
Describing demand chain, another school of thought argues that the demand chain begins
with your customer, and then funnels through resellers, distributors and other business partners
who help sell your company’s products and services (Deshmukh, Mohan, 2016). The reason a
customer chooses you over another competitor has to do with your understanding of your
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customer’s needs, strategies and priorities. Distributors can use data collected to personalize how
to reach their customers. For example, profiling uses data to make the exact right offer to the
right group at the right time. This is putting your customer’s needs first rather than promoting
your current offers. According to the article, Shoppers Stop, one of the leading retailers in
organized Indian retailing since 1991, always strove to provide a world class shopping
experience to its customers (Deshmukh, Mohan, 2016). SS initiated its first CRM efforts in
1994, using the same strategy to identify key loyal customers and to continue to foster those
current ties. SS executives proactively came up with “Project Drishti”, a data warehouse, in
2008 with an emphasis on identifying data from customers across all its stores and loyalty
programs and converting that data into analytics that could be used for decision making
(Deshmukh, Mohan, 2016). The project helped identify and understand their target groups
across various stores and programs and develop targeted and meaningful campaigns for the key
accounts. In all, customer centricity leads to new profits by matching the exact needs of your
customer with your products and services.
Article Summary
The business world is a constantly changing environment that does not always work in
our favor. If business plans and marketing strategies were implemented successfully with little to
no resistance, managers could simply sit back and reap the benefits. All in all, effective
implementation of demand chain management practices enable an organization to create an
environment controlled by beneficial interactions between their supply chain, demand chain, and
value chain. The study in this article advocates the coordination between these aspects to balance
the supply of services with the demand for value from customers.
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References
Deshmukh, A. K., & Mohan, A. (2016). Modeling Demand Chain Management (DCM)
processes for Indian retailing. Journal of Supply Chain Management Systems, 5(2).
https://doi.org/10.21863/jscms/2016.5.2.027
Freihat, S., & Homsi, D. (2020). Customer-focused service management as an approach
of enhancing service culture among fast-food chains. Management Science Letters,
2001–2010. https://doi.org/10.5267/j.msl.2020.2.012
Hill, M. G. (2021). Supply Chain Management . McGraw-Hill Education.
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