The relation between Marketing & Supply Chain Management ( Q )

Chapter 5 Conclusion and Recommendations

5.1 the main conclusion

 Based on the findings obtained in this research, it is clearly evident that supply chain management and marketing activities in organizations ought to be collaboratively approached. For multinational firms, the highly dynamic global environment necessitates a localized approach to the marketing activities in each country; which ought to be linked with the entire global supply chain of the firm. This study has revealed that, customers prefer localized marketing approach, and thus becoming necessary for the firms operating in the global platform to consider integrating their supply chain with marketing system in order to facilitate organizational learning. With respect to the studied organizations, Coca Cola, Pepsi and Nestle in Egypt, this study has revealed that the majority of customers are satisfied by the flow of their products (both new and existing) into the market through Hyper One supermarket.  The purpose from this conclusion is not to show the marketing activities and strategies in different markets, which depend on customization. This isn’t the research main idea, because of the research main idea revolves in the strategic integration between marketing and supply chain management which required from the Multinational firms to conduct customized and localized marketing approach specially in FMCG, the main important on this research to move the strategic integration between marketing and supply chain management to more strategic level which involving integrating local marketing talents in global supply chain management design for the Multinational firms  not only on the operational and tactics level but on more strategic level. In this study, integrating local marketing talent with the global supply chain design for the multinational firms within supply chain network not only considered to be necessary in order to ensure that the organizations have sufficient marketing intelligence; which is quite necessary for effective supply chain management. But to move the strategic integration between marketing and supply chain management to more strategic level within supply chain network as the supply chain management is derived toward customer value creation and also the proposed framework facilitate the strategic integration between corporate, customers and shareholders as well as the strategic integration between customers and suppliers which has an important and critical factor which is the integration between internal and external supplier which required integrating local marketing talent on global SCM for the Multinational firms on more strategic level in order to ensure effective information flow within the supply chain network.

While the integration between supply chain management and marketing may involve various firms in different countries, it was revealed in this study that firms must always uphold the legal frameworks provided in each country they operate in. Meanwhile, the use of EDI and POS technologies were found to be quite useful in linking supply chains and marketing activities among the four case study organizations in this research. It was also revealed in this research that, integrating customer needs along the supply chain is a key factor contributing to customer satisfaction as it was revealed in this research as we observed that the customer segmentations is essential to set the supply chain management strategies across markets. Integrating local marketing with global supply chain management design of the multinational firms can lead to utilize the concept of economies of scale and scope on a maximum usage through transferring this local marketing talent and conducting common advertising and marketing promotions which is more consistent within Middle East Region and the example of Egypt, United Arab Emirates and Kuwait prove the availability and the high potential of success.

 Finally on the main conclusion paragraph, as we observed that the research questions has answered within the body of the literature review and finding- data and analysis section as well as the interviews & surveys. We realized the importance of integration the local marketing talent with the global supply chain management design and the proposed frame work achieved and moving the integration between marketing and supply chain management to more strategic level through the explanation of the factors within the framework, as well as we realized that we can extend market orientation to supply chain orientation and what are the best method that can capture the voice of customers on the local market through the survey and the data analysis which recommend the customization marketing approach on the local marketing specially on FMCG and the importance of local marketing talent. Also we realized the qualitative and quantitative customer data through representing the role which they play and that supply chain management derived through customer value creation as well as the role of customer co –creation within the supply chain management, lastly the research objective achieved through the research proposed framework and integration the local marketing talent with the global supply chain management design for the Multinational firms on a strategic level not only operation and tactics level. Also beyond this idea through transferring this local marketing talent.by discussing the relation between multinational firms, local marketing talent and the concept of economies of scale and scope. 

5.2 Recommendations

As the global business environment and customers perception and demands are highly dynamic and has high rapid change, so the Multinational firms shouldn’t think on performing on the traditions marketing and supply chain management. The strategic integration between marketing and supply chain management within effective supply chain network should is becoming essential in today’s global business, the integration between marketing and supply chain management should designed to deliver the value propositions for different customer segments which supported by strategic marketing and supply chain integration. The strategic task of this integration lies on how to translate the integration into delivering the customer value propositions and partitioning supplier approach, so the Multinational firms should set a strategic framework which integrate between corporate, customers, shareholders, suppliers as well as the importance of integrating local marketing talent within this framework on more strategic level. The strategic integration requires an effective supply chain network with the local marketing talent. And this what this research is seeking to achieve  

Based on these findings, the recommendations section will be divided on 2 parts 

• The FMCG multinational firms in Egypt and Proposed Framework

• Local marketing talent

The following recommendations have been considered necessary for implementation on multinational firms operating in Egypt in the fast-moving consumer goods industry:

Multinational firms should source local talents to incorporate into their marketing teams in order to ensure that marketing intelligence is more accurate. This is because local marketers are more informed about the specific needs of the local consumers that a firm targets. 

Firms operating in the global platform should put due diligence on the legal frameworks that influence their supply chain management and marketing integration process. 

It is important for firms with complex supply chains to adopt automated supply chain through the use of technology (EDI and POS) in order to facilitate agility, quick response, and demand chain management in the entire supply chain.   

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If the multinational firm which serving in different countries haven’t an effective talent management specially marketing talent it will be forced to depend on consulting local consulting company within the foreign market, for example how the firm transfer the product from U.S. A to Egypt for example, could have 25% difference from the firm bottom line just because for something like taxes or other legal or environmental regulation so the importance on how the firm can avoid this extra costs or other complex issues or dealing with the uncertainty issues, as well as the political situation that should be very clear to the firm, so evolving talent management specially marketing talent is essential specially In FMCG because of the reasons exist on the body of the research.

The timing is very critical issue, intern, sales furcating is becoming an integral and huge part in order to success the managing of the supply chain and keeping costs down, as moving products are take longer time in the international scale , so the Multinational firms should focusing on an effective way on the idea of how much that bulk inventory is going to sell, so deliver value to customers and satisfying them might need large inventory within effective supply chain network that lead the sales furcating that fulfill the sales expectations, and this should make the Multinational firms to evolving their local marketing talents within their foreign markets

One of the main research’s recommendations to multinational firms which serving in different markets; they haven’t assume to much that’s means it’s a big mistake if the multinational firm when considering international expectations make to much guessing without accurate knowledge and statistically data & analysis, also this is not suffice it should depend on the local marketers which have high experience also they can deal with local marketing research company which can help their downstream local marketers through doing downstream marketing functions after taking the upstream  vision and strategy from the local marketers, multinational firms should make sure that their partners within the supply chain network can sustain the business.

There’s is three steps in order to achieving profit-centric supply chain which the multinational firm can conduct 

Any firm all over the world is seeking to gain profit; focusing the supply chin on profit enables the multinational firm to be aligned revolve common goals, which will be under achieving customer value creation.

Profit centric supply chain execution including the activities, which are focusing on optimizing key financial masseurs like the working capital and costs, revenues. By the way, with the traditional supply chain the concentration of moving goods being secondary factor, this is a logical evolution of the supply chain which involving strategic scenario analysis and optimization in order to improving the firm’s financial and strategic position also to improving the firm’s products. 

According to the Multinational firms; to captures the advantages or the benefits of the profit centric supply chain requires the following levels which is highly recommended to the Multinational firms

• Product life cycle: as it basic the product life cycle starting from introduction growth until end production phase need to be maximizing in their lifetime financial contribution that will help the marketing and supply chain management to compete in the market 

• Market life cycle: every market have unique life cycle so the Multinational firms which are serving in various markets across the world to manage the different market life cycle for each market according to its characteristics such as promotions, pricing, and product strategies, the way which the firms need to optimize the financial objectives to meet the variable cost which is highly recommended to the FMCG multinational firms.

• The main important point on which is relating to customer value creation and customer relationships which are essential for the strategic integration between marketing and supply chain management with integrating the local marketing talent because of on this point the Multinational firms should consider all markets are local which they have their own characteristics, so it requires from the multinational firms to set particulate structure, pricing, capacity distribution channels. Especially on the FMCG which this research is focusing.  

These are some tips to managing the profit centric supply chain

The multinational firms should optimizing the local profitability of the required products within the local market or the most prior products also they have to using strategic levers like promotions, pricing, supply chain as well as distribution channels, so in order to meet the strategic and financial goals for this local market, they should set additional products and services on prioritized basis in order to encompass the entire product portfolio

As one of the main important issues that the supply chain management should be highly ware of it, the dynamic and rapid change of the global market , so the Multinational firms should respond quickly to these changes so this requires to integrate the local marketing talent with their global supply chain management design also they should stay ahead of the local market with market leading innovation and products which is highly required adaptation , customization as well as fine tuned of the marketing mix, and products warehousing and logistics.

We can conclude that the successful local execution of the global supply chain management for the Multinational firms has significant benefits to the global firms and the local market. And this research explained that the proposed strategic framework has a positive effect to expand the marketing talent and transfer it to other countries which has similar culture and business environment which enable the multinational firms to conduct more consistent advertising campaign and integrated marketing communications in order to decrease the advertising costs, which was explained through the example of Egypt, united Arab Emirates and Kuwait. As integrating the local marketing and management talent enable the multinational firms to gain additional knowledge from the local market, which can be leverage globally such as product design

These are also some recommendations to the Multinational firm’s global supply chain management.

The multinational firms have to set aspirational goals as well as connect between the daily work and supply chain contribution to their local community, which they live in order to evolving the supply chain management and marketing talent 

The idea is not only to engaging the local marketing talent on the local operations issues but on strategic issues and the research on “discussion section” will view statistics and smart strategies on how to improve and evolve the local marketing talent and new synergies across best practices in order to more growth and inspiring the hearts and minds of the local marketing and supply chain talent for the Multinational firms on more strategic integration within the global supply chain network for the Multinational firms.

5.3 Discussion

This research conceptualizes the relation between marketing and SCM and the proposed framework moved this integration to more strategic level.

According to the theoretical perspective, the research proposed framework is important contribution within the existing knowledge on the relation between marketing and SCM and it’s developing this integration between both into more strategic level through the proposed framework which captures the integration between marketing and supply chain into business unit and moves them onto more strategic level. Integrating marketing and supply chain strategies involves the management of the following levels of integration:

1. Strategic corporate, customer, and shareholder integration.

2. Strategic supplier integration.

3. Strategic marketing and SCM with the local marketing talent integration. 

From the practical perspective, this research aims to providing guidelines to Multinational firms about the relation between marketing and SCM with integrating the local marketing talent into more strategic level, so this is a discussion about this issue:

According to the marketing and the trends in supply chain there are 10 games which changing the trends in the Global Supply chain, which can be listed on the following

1. Customer service to customer relationship management 

2. Adversarial relationships to collaborative relationships 

3. Incremental change to a transformational agile strategy 

4. Functional focus to process integration 

5. Absolute value for the firm to relative value for customers 

6. Forecasting to end casting (demand management) 

7. Training to knowledge-based learning 

8. Vertical integration to virtual integration 

9. Information hoarding to information sharing and visibility 

10. Managerial accounting to value-based management 

Figure 5.3 are the results from surveying more than 150 supply chain professionals in order to assess these trends and the figure will show us the changes of the results from 2000 to 2013.

Talent management which including marketing talent is becoming Cleary emerges as the linchpin required fro advancement in all areas.

Crating close relationships with customers enable the MNC to identify the long-term requirements, expectations and preferences of current and potential customers as well as it facilitate and evolving the operational configurations which help to deliver tailored supply chain with optimal profitability.

Improving the operational effectiveness for customers is highly desirable and it might be considered as building blocks toward competitive advantage.

The short time programs is simple and it easy to imitate but this performance is not suffice to sustain in a tough business environment so the strategic integration to the local marketing talent on a strategic level not only on short time operations and tactics is giggly required to sustain the competitive advantage.

In todays’ Global business MNC feel the need to cut expenses and this essentially requires evolving the local marketing talent. Many Firms have lack on the local marketing talent and in todays’ business the consumption or investment in humans is more important than consumption and investments on assets in order to developing a truly global mindset which will bring High return on investment. As well as MNC have to accelerate the evolving of talent in various different markets, in some countries the employee is highly educated and have an experience but not all of tem trained on the kills to working on MNC and as the research discussed that this actions will make high benefits in all the MNC, employee, Global business. The whole world characteristics 

The researcher see that credibility is very critical issue in delivering the value to customers and to developing Marketing talent, without credibility the world will be without value, if you are working on some job as an employee obviously you’re waiting for results in front of your self also waiting for assessment from your Manager about what you did so this issue should be achieved in a very sensitive criteria and also to be very accurate in order to success and evolving the world Business also in all domains. In marketing field, the trust is essential in order to achieve customer loyalty. People should invest on themselves and always searching for smart solutions and innovative ideas out of the box but it have to be built on strong and serious basics. If you trust your self and have a strong belief to be creative you will do it either you’ll find help or not. The researcher recommends the Multinational firms to focus more on developing the global talent, which leverage also the local talent. Also loyalty is very important topic, which deserve to take in consideration so this also depends on credibility.

 5.4 Limitations and future research directions

The research main topic lies on the global supply chain with the local marketing talent. This research is revolving on moving the integration between marketing and SCM for Multinational firms into more strategic level, so integrating local marketing talent with the global supply chain on more strategic level to set the research framework which occurred many questions which have beyond our scope but will hopefully stimulate further researches. IN order to move the integration between both into more strategic level. Integrating marketing and supply chain strategies involves the management of the following levels of integration:

Strategic corporate, customer, and shareholder integration & 

Strategic supplier integration. & Strategic marketing and SCM with the local marketing talent integration.

To adopt the framework should investigate the relations between MKG and SCM.  As well as in order to understand the relation between marketing and SCM which requires MNC to working toward customer value creation. The studies have to further investigate the impact of market orientation and supply chain orientation on the strategic decisions and choices for the MNC also the implementation process. It could be suggested that firms with simulations market and supply chain orientation to be more aligned on their marketing and supply chain strategies within the firm’s supply chain network. This research is focusing on local marketing talent as it’s play a vital role to move the integration between marketing and SCM into more strategic level. This research suggests that MNC should implement an integrated value chain approach, which could be based on strategic integration for the 3 levels that the proposed framework achieved. Further researches have to discover and investigate the link between the integrated marketing and SCM for the MNC as well as the strategic orientation of the collective supply chain also further issues about the adoption of wider SCM for evolving of a strategic perspective and explore the integrated value system management. This research is focusing on conduct the proposed framework on various different markets across the world so integrating local marketing talent into more strategic level is essential. To achieve this framework on various markets further researches have to suggest tools and strategies to developing the local marketing talent and suggest activities that could be important to move the strategic integration between marketing and SCM with integrating local marketing talent to more and more strategic level such as evolving the HR which concern on the supply chain talent and marketing talent also exploring concepts about the relation between marketing and SCM according to the dynamic global business and rapid  changes on customer demands and perceptions. Finally the further research have to investigate the relation between economies of scale and scope with SCM and the local marketing talent and try to developing this relationship, For further expand in various markets across the world.