Manufacturer End-Customer Relations – Research Paper Example
Manufacturer End Relations College: Manufacturer End Relations In all manufacturing industries, the supply of the final products is a vital process in the entire organization. The manufactured commodities have to be sold for the company to realize its profits. A manufacturer is a body that produces goods or products that are required by the customer for the running of their businesses. On the other hand, an end-customer is the person that purchases or puts into proper use the products or services that have been produced by the manufacturer. Hence, the manufacture is the individual that is mandated with the production of either goods or services that are required by the end-customer. From this definition, you find that both the manufacturer and the end-customer need one another for their survival in the world of business. Notably, there would be no manufacturers if end-customer did not exist and vice versa, and thus the manufacturer customer relationship is symbiotic in nature. Therefore, a supply chain is a system of business networks that engages the manufacture with all other intermediate activities such as transportation of the goods, distribution, warehousing as well as the sale of the commodities. In inertia, the supply of goods that is done effectively contributes to the satisfaction of the customer through the provision of goods that the customer feels and believes are of the best quality. This paper focuses on whether the integration of supply chain creates any conflicting objectives between the manufacturer and the end-customer.
Globally, all manufacturers interact with their customers through the intermediaries. This is because it would be chaotic for the end-customer to be going for their commodities at the manufacturing base. Also, it would a waste of time and other resources that could otherwise be put to more efficient use. However, the use of intermediaries has its shortcomings (Berry, Whybark & Jacobs, 2005). For instance, many are the times when it results in increased prices of commodities or the holding of commodities thereby causing their shortage and consequently, skyrocketing of the price of those products. On the other hand, end-customers believe that by eliminating the intermediaries, the problems that they face would also be reduced. Additionally, they would acquire goods or services at a much lower price than when they use intermediaries, a situation that will make them create more profits. Also, the manufacturers feel that the intermediaries are a stumbling block to them since they make it impossible for manufacturers to get direct access to their customers. As such, the producers feel that if the intermediaries were out of the picture, they would make more sales since they will be dealing with their end-customers directly. On the contrary, it is not possible for such a process to happen. This is because business would not be usual when intermediaries are eliminated. Notably, it would be an added cost for manufacturers to manage both the production and the sales of their commodities. Berry, Whybark and Jacobs (2005) write that a majority of the manufacturers have their standby suppliers to ensure that all their produced goods have been delivered to the end-users.
In their work, Harrison and Hoek (2008) have given the importance of incorporating supply chain in any business. They are of the belief that such harmonization heightens coordination between the two groups, both internally and externally. Also, it amplifies the relationship between the manufacturers and the end-consumer as the supply chain is mandated with ensuring that all the demands of the consumer are adequately met (Berry, Whybark & Jacobs, 2005). Notably, the relationship between the two calls for total trust, which, on the other hand, results in the formation of strong ties. However, the merging of the supply chain may at some point conflict with the objectives of both the manufacturer and the end-consumer. Notably, the objectives of the end-consumer are to acquire goods at a reasonable price so that they can get better returns from them. However, when the supply chain is merged, some things change automatically. To start with, the supply chain gets the burden of both storage and transportation. Therefore, they have to increase the cost of the commodity than when the end-consumer would get them direct from the manufacturer. Also, when buying goods from the manufacturer, the consumer is guaranteed of high-quality products. However, the intermediaries are known to tamper with the quality of commodities and manipulation of the prices of goods as a way of making more profit. This also corrodes with the objectives of the end-consumer.
Furthermore, the objectives of the manufacturer are cut shot when the supply chain is integrated. Reaching the end-consumer being the primary objective of the manufacturer, it becomes impossible to reach them once supply chain comes in. According to Harrison and Hoek (2008), the manufacturer loses personal contact with the end-consumer. As we all know, every manufacturer has to conduct a survey of how the consumer feels about their goods or services. According to the manufacturer, it is the end-consumer that should give the feedback since they are the ones that use their products. However, with the inclusion of supply chain, it is the supplier that gets in direct contact with the end-consumer and hence the supplier is the one that can conduct the survey. As such, there is no credit that the right information would reach the manufacturer if their commodities are tampered with. Hence, the manufacturer may not know the needs of the end-consumer, a situation that may yield conflicts between the manufacturer and the end-consumer. In conclusion, it is apparent that there is a trustworthy relationship between the manufacturer and the end-consumer. The end-consumer entrusts the manufacturer to produce high-quality goods at a reasonable price while the manufacturer entrusts the consumer to take away their manufactured products and services. However, this relationship comes to conflicts when the supply chain is included since some extra charges are added to the end-consumer that have to cater for the expenses that the manufacturer would have incurred in storing and transporting the commodities to the end-consumer.
Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing planning and control for supply chain management. New York: McGraw-Hill/Irwin.
Harrison, A., & Van Hoek, R. I. (2008). Logistics management and strategy: competing through the supply chain. Pearson Education.