Customer and Demand Management: Value Chain and Customer Service

This essay delves into the critical role of value chain management in achieving superior customer service. It explores how businesses can optimize their supply chains, processes, and strategies to enhance customer satisfaction. The essay examines the interrelationships between various strategies, processes, business units, and supply chain partners, emphasizing their importance in meeting customer demands effectively. It highlights the significance of value chain analysis, including primary and support activities, and provides a real-world example of A1 Stainless Steel Industries Pte. to illustrate these concepts. The essay emphasizes the importance of integrating communication, reducing delivery times, minimizing inventories, and improving overall customer experiences. The essay also discusses the importance of partners in the supply chain and how they contribute to meeting customer needs, highlighting how value chain management is essential for success in today's globalized business environment.

RUNNING HEAD: Customer and Demand Management 0
Customer and Demand
Management

CUSTOMER AND DEMAND MANAGEMENT 1
Table of Contents
Value chain management.................................................................................................................2
Value chain management, facilitates superior customer services................................................3
Interrelationships between the strategies..................................................................................4
Value chain analysis.................................................................................................................4
Partners of supply chain to satisfy the demand of the customers.............................................6
Example...........................................................................................................................................6
A1 Stainless Steel Industries Pte. , Analysis of Value chain.......................................................7
Primary activities......................................................................................................................7
Other support activities............................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Value chain management
The method of arranging the linked grouping of activities that generate value by manufacturing
goods or services from essential unprocessed materials for acquire by a costumer. The
fundamental aim of make use of the management of the value chain in an industry is to
incorporate communication and enlarge corporation among peoples of the manufacture chain in
order to reduce the time of delivery, decrease inventories and raise the satisfaction of the
consumer (Kim, 2018). The value chain management importance increases more than the past
decades as business in common has gone more and more global. As it involve investigating
procedure and the uncertainties from the starting to the ending of the chain in an manner of
integration to optimize the whole value. This management focuses on the understanding of the
diverse value of the consumers, determining inputs and production to examining value, creating
more values for the consumer and greater excess for the corporation. Thus value chain
management put together the ideas to handle the whole flow in the channel of distribution from
the dealer to the final consumer (Kim, 2018).
The value chain management includes the following
 Preparation and arrangement of the integrated chain of supply
 Management of the complete resources
 Series time responsiveness
 Optimization of supply chain-wide resource
 Addition of the vendor/customer information (D'heur, 2015)
Value chain management, facilitates superior customer services
The point of time takes for manufactured goods to get to the ultimate consumer is considered the
key indicator of the effectiveness through which the product flows. The faster the product gets to
the final customer, the more effective is considered product flow. Due to the value chain
management, the flow of the goods and objects is enhanced through the exact and accurate sales
and demand forecasting as well as better management of the inventory which shows the superior
customer services by reducing the delays. In this value chain management the products are
observable and traceable all through the chain of supply. It also enhances the capability to

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capture and handle the customers by better designing production and procurement which
increases quality of the materials, products and raise the value for the customers. The value chain
management, in this the flow of information to the customer’s increases (Russo & Confente,
2017). As the consumer are continually demanding a reply in the actual time as well as simple
admission to content about the products and the other features of the chain. When the
information is not continuous and inadequate, the relations between the dealer and the customer
turn out to be strained. So to give the superior customer services, value chain management
remove the blockage of the information flow and the superiority of the information is assessed
and solutions are executed to fill the gap of information. It also helps in examining the accurate
and exact estimates of the cost with the total and complete traceability (Christopher, 2016).
The value chain management enables the better scheduling, investigating and expansion of the
product by increasing the approach of the cross- functional team which focuses on the reduction
of the cost, quality of the product, handling the allocation of resources and deliverables more
effectively to the customers (Yuen et al., 2015). This helps in providing the superior services to
the customers. It involve the continuous and assessable processes of the business to better handle
the master data of the product to make sure that the expectations of the consumers are met. As
the value chain arrives from the perspective of the business management. For the value chain
management, the manager sees the opportunities through which they can add the value to the
organization by this managers makes the plans for the product, works and corporate with the
other members in the chain, so that they add value to the consumers and provides them superior
customer services (Kerber & Dreckshage, 2016).
Interrelationships between the strategies
The design of value chain decision includes the method, extent of integration between the
associates and manner of functional relations between the partners of the supply chain. The
simulation is used for examining the interrelations. These interrelations take place to give the
superior services to the customer by working together. The mode of interrelation among the
partners is based on the equity and non- equity. The various long term strategies are made which
is related to the place, manufacturing, shipping, stock to make timely deliver to the customer
according to the customer needs. The next medium term strategies which is interrelated with the
long term strategy includes the planning about the shipping, plan for the manufacturing and all

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the materials which are required to create the value and the last short term strategies are made
like after sales services, promotional activities to attract the customers and satisfy them by
providing better services (Wood & Lincoln, 2018).
Value chain analysis
Various activities involved in the management of the value chain and providing the superior
services to the customers. They are-
Primary activities- These are the five major activities which are straightly involved in the
manufacturing and selling of the real product. It involves the physical formation of the goods,
sale and move to the purchaser in addition to after sale assistance.
Inbound logistics- In this the concern is on the obtain inputs for example the raw materials. It
leads accepting, warehousing and manage the stock. This helps in timely delivering of the
products to the customers as per their needs and expectations.
Operations- After the raw material is composed; operations can change the raw materials into
the desired product. All the activities and actions that create the value and change the raw
materials into the finished products it includes bringing together and manufacturing. This helps
in providing quality products to the consumers.
Outbound logistics- Once the operation of the final product is done. In this all the activities
which are performed to obtain the finished product to a consumer and to provide them superior
services. These are warehousing, management of the inventory, fulfillment of the order and
distribution of the products.
Marketing and sales- It includes all the activities which are related to getting a purchaser to buy
a product like advertising, selection of channel. This helps the customer in gaining the full
knowledge about the product and to choose among the various varieties of the product.
Services-It deals with the after sale services which is provide to the customers. So the after sale
services is considered the significant promotional activities. In this activity which are used to
handle and develops the value of the products are involved. It includes support to customers and
other services a like warranty (Myerson, 2015).

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Support activities- These considered all the activities which supports the primary activity. The
objective is to manage their functions in better manner to provide the better services to the
customers and satisfied their needs and expectations. The secondary activities includes-
Procurement- It refers to the function of buying raw materials used in the value chain of firm.
Procurement includes supporting all the activities of value chain not only inbound logistics.
Technological development- In this activity is done to improve and develop the products
according to the customer needs. Research is done of the product design and procedures of the
consumer service.
Management of human resource- In this activity shows selection, training and all other actions
to manage the human resource. So that the competent employees are selected and developed,
those who provides superior services to the customer by innovation
Infrastructure of the industry- It includes arrangement, finance, accounting and management
of the quality. It supports the whole chain of value not just the single activity. This helps the
customer to get the quality products and giving all the services which satisfy the customers
(Reese et al., 2016).

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Source: (Reese et al., 2016)
Partners of supply chain to satisfy the demand of the customers
The partners of supply chain in the value chain management combines the methods, procedure
and the people to convey the best and superior value in the effective manner as possible. It
includes all the partners which make the process successful. Some of the partners in the chain
informs about the technologies used in the process, when to use and advance it to develop the
quality of the products and make efficient products (Min, 2015). While other partners in the
chain provide the instruction about the contract of the manufacturing, shipping and inputs. The
operational and mechanical expertise allows the partners to effectively collaborate with the
customers to develop the solutions to satisfy the customers’ distinctive and specific needs. This
relationship allows the partners to understand, sustainable, generating the solutions for value
procurement, management of the quality, timely delivering of the products. Supply chain
partners make the excellent strategy to provide the superior services to the customers by creating
the value in the products and the services. The strategy focuses on four supporting things which

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include understanding; implementing, enhancing and last the value check is helps in generating
the better value for the customers (Min, 2015).
Example
A1 stainless steel Industries Pte.- It is incorporated in the year 1982 as a top manufacture of
steel, The company specialize and concentrate in the business of fabricating the stainless steel
works. Throughout the years it has extended its capability, machinery and the infrastructure as
well as maintaining of expert craftsmen to manufacture the fabricated steel which is of high
quality. The company has achieve the faith and loyalty of various consumers because of the good
status for consistency and the most significantly the quality work done on the product by making
improvement in the technology, quality resources. The company has outstanding record and does
many projects like Chargi Airports of the Singapore, churches, and schools. The company is
excellent in meeting the needs and necessities of the consumers in conditions of the timely
deliverance of the goods and services through the value chain management. These all are the
activities which are done by the A1 stainless steel industries in the value chain management to
satisfy the customer and to provide them the excellent facilities. The company does the primary
and secondary activities to provide excellent value to the customers (Anon., 2019).
A1 Stainless Steel Industries Pte. , Analysis of Value chain
Primary activities- It includes all the activities in the done in the five phases like the inbound
logistics, operations, outbound logistics, marketing and other services.
Inbound logistics- In this the arranging and retrieving all the resources and division of these
resources to various other areas included for making the goods efficient.
Operations-
 In this company does activities like managing and reprocessing the inputs like converting
coal, iron rock, Handling of metal object for melting, crushing chunk, stick of wire,
preparing and repairing of the rolls.
 Further it includes generation of the atmosphere oxygen, nitrogen, place and dehydrated
air. It also includes producing of the plant requirements components, fixing of the
electrical and materials of the electronics.

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 Preparation and controlling the manufacturing and all other activities which is involved in
manufacturing and operating the steel for maintaining the quality.
Outbound logistics- The activities involved in this are transmitting, management of distribution,
warehousing and order completion of the customer to make the timely delivery to the customer.
Sales and marketing- for making the customer aware about the goods produced and attracting
them, the company does the management of the price, promotion, delivery and sales like sales of
domestic which includes the project sales, retail sales and also exports sales.
After sales services- The A1 stainless steel industries provides warranty, settlement of
complaint procedure to satisfy the customer and to provide them excellent services (Rana &
Singh, 2016).
Other support activities
Management of the vendor- The Company involves regular examining, performance appraisal
and make regular communication with the local SSI’s for satisfying them to work effectively and
give excellent services to the customers.
Purchase- In this company does identification of the sources through which the elements,
machinery and auxiliary can be purchased to make regular supply.
Logistics- It includes utilizing the facilities of ports and maintaining the container to proper
supply of goods to the customers.
Stores- It includes control of the inventories to support the primary activities and to save them
from damage. The company used the software to manage the inventories, instructions,
information of orders and delivery. This helps the company to use the digital method and
maintains the majority works of the company.
Development of technology- The Company increases procedure of automation, research and
development to know the needs of the customers and manufacture the quality of goods
accordingly.
Management of the human resource and service- The Company manages the human resource
by making the schemes of the suggestions, incentives, provides awards for the efficient work. It

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also provides training to the human resource, systems of information. So, that the employees of
the company managed effectively and work according to the standards of the customers. The
company maintains the materials and marketing policies like after sales services to give superior
services to the customers.
Monitoring the project- In this step the activities which is related to the management of the
project is considered that is the company takes the feedback from the employees regarding the
status of the project. The employees provide the information on the time for the stoppage made
in the activities for certain reasons. The company does the testing for the critical areas of the
project to check the progression of the project. This is done by the company to make the project
according to the demands of the customers and satisfied them by providing with superior
services. This helps the company in gaining the loyalty of various customers (Handfield et al.,
2015).
Conclusion
From the above it can be concluded that value chain management is considered the procedure of
linking the activities together and generates values by converting the raw material into the
finished products. The main objective to make the efficient use of the management of value
chain by increasing communication and corporation among the partners to satisfy the customers
by providing them better and excellent services. The value chain management allows superior
services to the customers by correct forecasting of the sales and the demand of the customers as
well as through improved management of the inventory. In this the products are visible and
observable throughout the supply chain. It improves the capacity to handle the customers by
good design of production. The value chain management evaluates information and provides
solutions to fill up the crack. It facilitates better arrangement, examination and development of
the product by raising the procedure of cross- functional team. The value chain management
facilitates correlations between the strategies made for the long, medium and short term. The
value chain analysis does various activities to provide superior services to the customers like
primary and support activities. In these activities various steps involved for make the quality
products, timely delivery of goods and to satisfy the customers by giving after sales services. In
the management of supply chain there are various partners which satisfy the demand of the
customers. It can also conclude that an A1 Stainless steel industry does various activities in the

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value chain analysis to provide superior quality to the customer by developing technology,
store’s inventory.

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References
Anon., 2019. A1SS PTE.LTD. [Online] Available at: https://www.a1ss.com/home-1 [Accessed 6 July 2019].
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Business. Berlin: Springer.
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Management. Boston: Cengage Learning.
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Materials Managers. Boca Raton: CRC Press.
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University.
Min, H., 2015. The Essentials of Supply Chain Management:New Business Concepts and Applications.
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Planning, Operations, Integration, Control and Improvement, and Network Design. Upper Saddle River:
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Rana, R. & Singh, S.B., 2016. Automotive Steels:Design, Metallurgy, Processing and Applications.
Sawston: Woodhead Publishing.
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