Saturday, July 21, 2007

Innovation,Technology or What????????

Its a statement of many businessmen that supply chain play a vital role in any business, there are various well known examples: J.C.Penny (retail chain in US), Walmart, Zara fashion designed cloth chain, obermeyer etc which believe that SCM play a vital role behind any successful organization.
What about innovation, creativity, customer care?
There is a very simple example of Nordstrom a retail chain of footwear, apparels etc , this company's main objective is customer satisfaction at any cost. So it keeps huge stock of all items of all varieties which increases its total inventory cost, holding cost etc even though this company is doing excellently well in US and its among big retailers of USA.

My question to all of u is: Is there any specific set of rules for retail companies for their success or do they design their own set of rule on the basis of their personal experience for success.


Mritunjay said...

I am a Marketing guy and a firm believer of the notion that "THE CUSTOMER IS ALWAYS RIGHT".
Supply chain has its own constraints but then isn't it all just to help a customer meet his need?
Hence what i feel is that the approach of companies who even go for a stocking spree is not wrong but then comes the angle of planing and customer knowledge. If you think you know your customer well then you should also be able to forecast with relatively fair degree of confidence the demand patterns that may arise.
So the situation returns back to ground zero: WHAT TO DO?
The answer I would say lies in the simple fact that stock or zero inventory whatever be the approach, the key lies in customer satisfaction.
If you serve them well, it's good. Else I too have a shop!!

Marketing student said...

Personally my belief is that success a blend of both SCM+Innovation..
reasons: without proper SCM one can't satisfy his customers & without innovation ur product will loose its market very early & became waste in techie world..

but i am waiting for more views

Yasar Arafat said...

well the main question is whether there is any "Specific set of rules" or they define their "own set of rules". According to me the main bottom line is success nd everyone want this only. For this they have 2 choices either they define their own set of rules or they follow Specific set of rules which dfne b some ohther vissionaries or extracted by othr success stories. if they define their own set of rules then they hav 2 do lots of deep market research and heavy data minning procss with the study of demographs n all, and simulataneously they need good visionaries. Here they need less inovation as they r doing research n all so they incedently incorporated some inovation in if they follow Specific set of rules then first question arieses whether there is any Specific set of rules exist. well as far as i know there is no such rules exists. if any one acclim tht he have some Specific set of rules then he is lying just because evry rule is bieng incorporated by other success stories which done their own research and setup their own set of rules
by doing market research n all.
so every sucess is depend upon market research and in it SCM played a vital role

jyots said...
This comment has been removed by the author.
pallavi said...

hey there....just was the blog...will sure pop in a while....good job
till then good luck

Sampad Kr Swain said...

The question that you have asked is quite good and mature from your side.I really appreciate that!
But in this analysis we should not forget "Core Competence" or "Value Chain" (though i hate to use jargons).The above said companies (I guess so) have done some sort of analysis on these parameters and come to the conclusion that their point of differentiation to their customers is through these activities.I guess they could have come to the conclusion only through benchmarking their overall operational activities and then understood wherein value creation is taking place for themselves as well as their customers.And regarding creativity and innovation;Imitation is another way to innovation and innovation breeds creativity (ceveat being that they have to be succesful on a sustained period of time).

icecool said...

@ mrityunjay.... i'll say its not always that the customer is right... sometimes the customer doesn't even know wht he wants forget being right or wrong. Check out SONY... in hi-tech market consumer doesn't know wht to expect!
About retail u change the format, supply chain, or wht ever.... the rulz of the game remain the same. margin or turnover?

Anonymous said...

i am highly disagree with SAM he told that imitation is a kind of innovation then INDIA is no. 1 in innovation but when u check out patents INDIA is no where.

sachin said...

yes u r right. i think that companies have to provide the nice item. it not an important matter that rule was from comp/govmental.
sachin singh
Biology student

Anonymous said...

I join. So happens. We can communicate on this theme.