Business Goals: Manugistics Group, Inc - Essay Example

CASE STUDY What business goals can Manugistics help a company meet? The Business goals that Manugistics could possible help a company to meet wouldbe as follows: Conspicuously increasing the Rate of Return for the company Increasing the long term profitability of the company in real terms Reducing the operating costs and increasing the margins of returns Increasing the rate and volume of revenue generation Achieving an effective supply chain relationship and management system Optimizing the real gains resulting from strategic networking with customers, suppliers and employees Creating a congenial working environment by promoting cordial relationships among associates Using strategic planning for the execution of short, medium and long term organizational objectives and generating roadmaps for achieving them Creating necessary facilities by ensuring total customer satisfaction, with respect to the goods and services provided to them, in line with highest standards of quality inputs provided by reputable suppliers, backed by an efficient and effective after sales servicing system By reducing the cost of production and enhancing revenue generation, ensuring optimum returns to stakeholders Evolving strategic planning techniques and ensuring its execution for maximum growth. (Produce best product, lowest cost). How does Manugistics promise to achieve these goals? Manugistics promises to achieve these goals by creating favorable conditions on the costs sides by keeping costs as low as could be, and on the revenue side, enhancing the company’s revenues as much as it could possibly do. This entails entering into strategic partnerships with suppliers and customers, to create and nurture effective supply chain management techniques for optimum all round efficiencies. On the pricing side, it is necessary to know what the prices should be, and what the price customers are willing to pay is. The company should be in a position to offer value addition to products and services, in order to enhance sustainability, and sustain a strong and consistent customer base. Products need to be designed according to the requirements of the customers, and the materials should conform to quality and pricing standards. After the transformation of the raw materials into finished goods through the manufacturing processing, these are packed and shipped to the various customers. It is important that the company receive relevant feedbacks from the manufacturing, suppliers, logistics and most significantly from the customers. It is necessary to offer the most economical and competitive prices to the customers, by reducing costs and increasing margins to the optimum level and also ensuring high quality products through satiation of the demands of the customers. The demand and supply aspects of the company should be continually increased, so as to be able to offer enhanced supplies for catering to a large demand for the products and services offered to the customers. (Produce best product, lowest cost). Explain Manugisticss view of supplier relationship management and supply chain management The Manugistics views are that there should be an integrated approach to the supplier relationship management and the supply chain management by strengthening pricing and optimizing revenue generation. It is therefore to be ensured that increased levels of demand side and the supply side of marketing are aimed at; thereby the pricing and optimization aspects could be taken care of. However, it is necessary to have complete knowledge about the customers’ profiles, including segmentation of markets based on the ‘ability to pay’ concept. (Produce best product, lowest cost). The best product mix provided to product locations for optimizing pricing and marketing strategies evolved to enhance revenue generations need also to be taken into account. During times when there is a increase in demand as compared to supply, and increasing the production bases are not possible, there are possibilities when, through the use of strategic marketing forecasting techniques, the demand could be aligned to suit the restricted supply situation. Similarly, when there is supply side overtakes the demand, measures could be adopted to hike demand including pricing strategies, sales promotional and brand building exercises, aimed at better market visibility for the products and increasing both the supply and demand sides of the Company for increased pricing and revenue generation. Describe Manugistics view of pricing & revenue optimization using EPO method. The aspects of Enhanced Profit Optimization (EPO) are to be applied in the following areas of the company’s functioning: Best Supply Chain management Strategic relationships with the suppliers Collective Planning Environment (Produce best product, lowest cost). The aspects of EPO needs with expanding the margins of the business by selling the products at the lowest costs and with highest possible revenue generation and profitability. On the cost side, it is designed to reduce operating costs, increase logistic and manufacturing efficiencies, while on the revenue side, it is aimed at boosting demand and sales through strategic planning, organizational support for realizing corporate goals, and also planning and execution of programs designed to help achieve profit optimization and goal achievements. The use of advanced scientific concepts and techniques for the implementation of EPO are also necessary, in order to seek build better value systems for products and services. By use of a dynamic pricing system, which is able to attune to fluctuating market conditions and competitors’ strategies, the Company is able to increase its profitability and bottom line, while, simultaneously, ensuring and maintaining sound ethical practices and excellent strategic management relationships with supply networks and procurement bodies. The EPO is primarily designed to create conditions that are conducive to maintaining the highest quality of the product with excellent service network, but at the lowest price, both for the manufacturer, and for the ultimate buyer. (Produce best product, lowest cost). By specifically addressing to the aspects of broadening the margins of the business, over a period of time, and introducing efficiencies in all aspects of the company, it is possible to gain substantial cost reductions, which could be passed on to the customers, in the form of reduced selling prices and enhanced value addition. This ensures that the highest degree of customer satisfaction, product quality and sustainability is maintained over a period of time of time, which results in dramatic increases in return to the company and its stakeholders. Works cited Produce best product, lowest cost. Manugistic. Enterprise optimal price. 9 Nov. 2007 Read More