Market Orientation In Supply Chain Management

The Supply chain is described as a network of different companies producing, handling or distributing product. The supply chain comprises all the stages to get goods and services from the supplier to the customer. Mentzer and Gundlach (2010) elaborate by stating that given the significance of supply chain activities to the firm as a whole, it stands to reason that the supply chain cannot be managed effectively in isolation. Supply Chain Management needs to be considered in nearly all elements of the firm to ensure success; this can be accomplished if the organisation is prepared to adopt a common philosophy or orientation internally (Kotzab et al. 2011). Supply Chain Orientation is defined as the recognition by a company of the systematic, …show more content…
NSMO portrays market orientation as a company-wide culture, whereas KJMO presents market orientation as a set of organizational behaviours executed by individuals. This raised an argument regarding employee conduct versus company culture (Carr and Lopez 2014). Matsuno, Mentzer, and Rentz (2005) (MMR) evaluated the market orientation definitions, conceptually and empirically, and concluded that KJMO’s and NSMO’s conceptualizations of market orientation were conceived at different levels of …show more content…
Customer satisfaction is not just an important metric to manage and improve business performance; it is a platform for creating brand loyalty (Bennett and Karvinen 2006). The prevailing theory is that firms who are driven by customer satisfaction, perform better than their competitors by anticipating the development needs of consumers and responding with the required goods and services with the correct specifications issued by the customer (Ulaga 2003; Woodall 2003; Woodruff 1997). In tailoring the firm’s offering to the customer’s requirements, the firm enhances its value proposition to its customers (Doyle and Stern 2006). Satisfying the end-user or external customer is fundamental purpose of market-oriented organisations (Deshpandé & Farley 1998; Kirca, Jayachandran, & Bearden 2005). The organisation ultimately needs to learn from the market what the needs of the customer are and determine how best to respond to deliver satisfaction to the customer (Slater & Narver 1996; Weerawardena 2003). The quest to create value and construct a proposition which will provide satisfaction to the customer can be executed effectively only if the supply chain processes are oriented towards doing so (Narver, Slater, & MacLachlan, 2004). At a strategic business level, competitor orientation and inter-departmental collaboration needs to be driven with the primary goal of