Convergence of Supply Chain and Marketing (CSM) for Building Competitive Advantages

Abstract

In this era of globalization and intense competition, great efforts have been made to cut costs and adjust flows in supply chain to increase profits. Now, firms are starting to look ahead in the chain. It is sound knowledge of customer needs that will control production and supply of goods. This overall perspective of both the customer need and the flow of goods are fundamental for achieving competitive advantages. The failure of supply chain and marketing integration is significant barriers to identifying and responding to customer demand, optimizing inventories and production runs, exploiting sales and product development opportunities, and servicing the customer base. It also leads to either excessive inventories or out-of-stock situations. Poor collaboration leads to this situation internally, as well as up and down the external supply and marketing channels. The goal of Convergence of Supply Chain and Marketing (CSM) is to create unique competitive advantages by linking together customer values with a more effective flow of products and goods. The flow must always be refined and create customer value proposition in a constantly changing market. By encouraging supply chain and marketing people meet in new interesting scenario, firms can develop unique competitive advantages. It is all about achieving CSM. Paper also highlights role of CSM in resolving conflict between supply chain and marketing, and suggests effective strategy for its implementation.