CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Revenue growth is a top priority on corporate agendas today. Companies are grappling with challenges such as learning how to enter new markets and attract new customers, identifying which new channels to tap in each segment and geography, and determining how to penetrate deeper and wider into the existing customer bases. Retailers are experimenting with novel store formats and fostering new, more intimate relationships with consumers.
Additionally, manufacturers are interacting with consumers and discovering new prospects via mobile apps and social media. Identifying the most profitable approach and determining the most loyal/productive customers and the most advantageous products are important supply chain-related tasks.
The supply chain development of production companies can impact both the environment and local economies, especially in emerging markets. This impact can be positive or negative depending on factors including: market pressure to lower costs and the extent to which companies are focused on responsible supply chains. Changing market dynamics and emerging technologies enable players across the consumer goods value chain to revisit their supply chain strategies to propel growth and gain operational efficiencies. A truly adaptive supply chain requires a shift in approach. For most organizations, this means:
Rethinking supply chain strategies to accommodate new and varied market forces to grow revenues.
Reinventing supply chain operations to achieve or retain optimal cost efficiency and create new business capabilities.
Rewiring supply chain systems to leverage technological advancements that help organizations deal with ever-changing market dynamics reflected by spikes in volume and information variety — while boosting productivity.
This project seeks to determine the benefits of turning supply chain in production companies.