The relation between Marketing & Supply Chain Management ( N )

 more strategic integrating between marketing and supply chain management,

A network business model has developed over the last 3 decades, that’s means the firms have moved from hierarchal and vertically integrated shape to be more closer, even virtual network of partnership with key suppliers (Christopher and Ju ̈ttner, 2000). According to this concept, the network considered as a series of nodes, which connected through links. So it’s critical and rally important to mange those links through an effective integration between partners within the supply chain network to ensure the sustainability and firm’s competitive advantage. The network is viable to expand so if the network fails to act in a concert for whatever reason results the potential risk for the focal firm could be in consideration (Ponomarov and Holcomb, 2009). Within the network business model the integration of the strategic decisions is something important but to integrate the network from the customer end to the supplier end is something very complicated so the strategic integration between marketing strategies and supply chain strategies is highly required. As the marketing strategies focus on the decisions associated to customer demands, market segmentation, distribution and the marketing mix 4 p’s “product place, price, promotion” strategies (e.g. Kotler and Armstrong, 2007).

 Supply chain management includes a focal firm behavioral orientation toward collaborative partners within supply chain network as well as it’s also involves the process configurations across the key supply chain process (e.g. Green et al., 2006; Tokman et al., 2007). Supply chain strategies are also concerning on optimizing across organizational activities which rely on a close relationships with high degree of interactions and integrations with marketing and sales.

The marketing strategies should be infused across organizational business process in order to transform the customer perspective within the supply chain network.

On this topic the researcher want to mention that the interface between marketing and supply chain management results mutual benefits to both fields through the close alignment, according to this point many researches such as (Martin and Grabc 2003) suggest that supply chain management leverage marketing strategies as well as the firm’s market orientation also it could ease and support the marketing strategy in global supply chain contexts and it has a significant positive effect on increasing customer value ( Flintand Mentzer 2004), many studies such as (Green et al,2006) suggest that firm’s supply chain strategy has a positive effect on marketing orientation such as mediate the relationship between market orientation and financial issues that lead to marketing success. A lot of studies such as (Min and mentzer 200) discussed some of the key theoretical concepts of marketing and supply chain management and conclude the following (marketing concepts, market orientation and relationship marketing considered as factors which are inextricably linked with supply chain management. at the operational level, also the studies investigate the impact of marketing activities within the supply chain management.

The interface between marketing and supply chain management can be discussed through three different perspectives’ (inter functional perspective & process perspective & integrating business concepts perspective.)

a) Inter -functional perspective:

Inter -functional perspective considered as the first contributions, which lies on the integration between marketing and logistics & manufacturing.  Logistics and manufacturing considered as they have the biggest influence on the development of supply chain management, as well as seen as conceptual processors on the last three decades. Logistics is the function, which responsible of managing the flow of materials & information as well as it’s contributing on the supply chain management. As many researchers such as  (Cooper et al., 1997) recommended and stressed on the need to broaden the scope of supply chain management beyond logistics. The interfere and relation between logistics and marketing could be through the origins of logistics as the physical side of distribution as well as the coordination between both increasing the firm’s customer value creation and have a positive impact on the customer service performance.

Some researchers such as (Chen et al., 2007 and Ellinger, 2000)stressed on the rapid change of the global business environment and customer demands, and here the role of local upstream marketer with the assistance of downstream marketer emerge and should be on the strategic level within the global supply chain network for the Multinational firms. Manufacturing and marketing interface has very important relationships of integration due to these rapid changes of the external business environment and customer perception & demands. The integration enables the factory to respond quickly to dynamic market changes. Many researches such as (Kahn and Mentzer, 1998, and O-Leary-Keller and Flores, 2002). Confirm on the importance of collaboration and integration between both as well as the joint decision making on a range performance toward customer’s value propositions. 

By the way almost of the studies about inter-functional perspective are based on resources dependence theory that was exist on the 1978 for (Pfeffer and Salancik) also Anderson and Salancik 1982) which has developed until now as the fundamental changes on the economic system as well as the continuous change of the global business environment and customer perception & demands. By the way both theories for (Pfeffer and Salancik 1979 and Anderson and Salancik 1982) emphasize the specialization of functional areas within organizations and the interdependence between them. However the logistics & manufacturing considered as the key function within supply chain management but they are not suffice to reflect adequately the breadth of the conceptual domain as well as its cross organizational nature, they just reflect a subset of the relation and interface spectrum between both disciplines. So it should be related and integrated to the other factors within the supply chain network.

B) Process perspective 

While the inter- functional perspective often conceptualize the interplay from an interdepartmental stance as well as focus on the relationships between the organizational units. But the process perspective is independent from the structure of the organization, when we looking at business activities that traditionally related with marketing and supply chain management, also the process perspective expanded to involve suppliers & customers within the supply chain 

The process integration within and between organizations or partners in the supply chain is a key characteristic of the conceptual domain. By the way according to marketing point of view which see the operation as an element that increase the customer value which marketing is embedded in the way that customer value maximized, because of their cross functional nature process which facilitate the interpretation the relation and integration between demand creation which marketing is embedded and demand fulfillment process as the supply chain management process  (Christopher and Payne, 2002, Ju ̈ttner et al., 2006). From this point we can say that the integration between demand creation and fulfillment processes considered as the key of delivering products which transform value to the customers through deploying resources on an efficient way. (Srivastava et al., 1999). Said that, the explorationof the interdependence among the process should lead to high success in the marketplace rather than concentration on improving the individual processes. ( Rainbird 2004) provides a processes fusion model which focusing on the integration between demand and supply chain processes, “Rainbird” differentiates 8 supply processes  which started from order receipt/entry until delivery option as well as he introduces 7 demand processes such as customer relationship management and one of the essential processes is macro market definition. “Rainbird” mentioned the following “ the linkage or the fusion between those processes can be achieved among 2 factors either the management, specific organizational capabilities or the technology. From this point  (Ju ttner et al. 2007) built his own vision and he suggested tree layers of processes integration model that links between demand which marketing embedded, and supply chain process to the customer’s buying life cycle that’s related to customer value propositions through adopting the expanded supply chain perspective and linking marketing & supply chain processes to customer value creation, from this point the process perspective captures a wider range of the interface spectrum between marketing and supply chain management rather than the inter-functional perspective. 

C) Integrated business concepts perspective: 

In the last decade, diverse business concepts have emerged associated to the ides which focusing on the integration perspective between marketing and supply chain management, such as  “QR” quick response, agile supply chain management, as well as the last one that introduced recently “DCM” demand chain management approach. All these three concepts are seeking to bridge the gap between the supply chain management and market through increasing the supply chain’s response time, flexibility or its differentiated customer focus which is confirming the purpose of SCM toward customer value creation.

 First lets explain 

1) The concept of QR movement that began in the north American textile and apparel industries and was introduced to the market as a competitive response to low cost competition from the offshore manufactures, the description of “QR” according to (Christopher and Towill, 2002, p. 2). Can be described as the following; it’s a model of time compression that aim to reduce the time in the supply chain management that build on the recognition which closer to the customer means in order to create value to the customers. Closer refers to closer on time more than closer in distance, QR concept was the first concepts that exploit bi-directional feedback and feedback forward flows of information between the expanded supply chain, among fast exchanges of demand information between not only apparel& retailers manufactures but it was also textile industry producers. QR concept identify that demand driven decisions could be made at the last possible moment, and this guarantee the maintenance of diversity offerings while also it enable the firm to decrease the lead time also cost and inventory are minimized. 

 2) Agile supply chain management: The origins of agile supply chain according to the business concepts can be describe as the flexibility system of manufacturing, but flexibility as its key characteristic was soon expanded to the supply chain level as (Naylor et al 1999) mentioned. The main objective of agility lies on using market knowledge and virtual corporation in order to exploit profitable opportunities in changeful marketplace. Some researchers such as (Christopher 200) focus and stresses on the ideas of process – driven and network –based as tow further distinguishing elements of agile supply Chains., Agile supply chain management is viewed as a proper approach in contexts with the important need to quick reaction to the violate changes in the market demand, either in volume, variety, marketing mix, by the way and according to (Goldman et al 1995) who said that, this help the firm to exploit the unpredictable changing customer opportunities. 

3) DCM concept: this concept considered as the most recently introduced approach and it still developed until now, as well as it lacks a consensus of its characteristic’s definition. While some of its supporters such as (Selen and Soliman 2002) define it as the factor which has a set of activities which aim to mange and coordinate the whole supply chain which starting from end customer as well as working backward to raw material supplier.  But other researchers who criticized this concept who see this concept, as it’s broad understand and also they mentioned that this concept would imply that, demand chain term could effectively replace the supply chain. Instead they recommend restrictions of the concept to demand chains for products with innovative demand, where supply chain efficiency is trade off for customer service  (De Traville et al.2004). For any case, DCM concept are focusing to link the supply chain management to the market characteristics and this perspective came from the idea which explained that customers are becoming increasingly sophisticated and demanding. Hence the importance of integrating the local marketing talent on the global supply chain management design for the multinational firms on more strategic level.  All the three concepts has emphasized the behavioral orientation within supply chain toward the customers such as the supply chain should be designed and operated from the customer backwards rather than factory outwards.