Module- 2
Consumerism
Presented by,
Dr. Lasya KR
Associate Professor
Surana College (Autonomous)
Dr. Lasya KR - [Link]@[Link]
Consumerism
Consumerism in Supply Chain
Management (SCM) refers to the
prioritization of the needs and demands
of consumers within the entire supply
chain process.
Dr. Lasya KR - [Link]@[Link]
Evaluation of consumer Society
1. Understanding Consumer Society Trends
Consumer Behaviour
Demand Fluctuations
2. Impact on Supply Chain Design
Supply Chain Responsiveness
Inventory Management
Technology Integration
3. Sustainability and Ethical Considerations
Sustainable Practices
Ethical Sourcing
4. Customer Experience
5. Challenges and Opportunities
Dr. Lasya KR - [Link]@[Link]
Definition of
Consumerism
The definition of consumerism is multifaceted, encompassing both
positive and negative aspects.
In a positive light, consumerism can drive economic growth and
innovation, as businesses strive to meet the evolving demands of
consumers.
On the flip side, excessive consumerism can lead to
overconsumption and waste, adversely impacting the environment
and societal well-being.
Dr. Lasya KR - [Link]@[Link]
Buyer’s Rights
Buyers have the right to receive products that meet
their expectations in terms of quality, safety, and
value.
They also have the right to transparent information
regarding the products they purchase, including their
origin and the conditions under which they were
produced.
Dr. Lasya KR - [Link]@[Link]
Seller’s Rights
Sellers have the right to fair compensation for their
goods and services and to operate in a market free from
unfair competition.
Ensuring these rights fosters trust and cooperation
between all parties involved in the supply chain,
promoting a healthy and sustainable consumer society.
Dr. Lasya KR - [Link]@[Link]
Effects of Consumerism
1. Increased Demand for Customization
2. Demand for Faster Delivery
3. Sustainability and Ethical Concerns
4. Globalization and Local Sourcing
5. Increased Pressure on Quality
6. Data-Driven Decisions
7. Inventory Management Challenges
8. Increased Competition
Dr. Lasya KR - [Link]@[Link]
Organizational Buying
Refers to the process by which organizations purchase goods and services for their
operations. This process involves several key steps:
1. Need Recognition
2. Specification Development
3. Supplier Search and Evaluation
4. Supplier Selection
5. Order Placement and Fulfilment
6. Receipt and Inspection
7. Payment and Record Keeping
Dr. Lasya KR - [Link]@[Link]
Concept & Comparison with
consumer buying
Influence of Buyers on Sellers
1. Demand Specifications
2. Pricing Pressure
3. Supplier Selection
4. Forecasting and Planning
5. Payment Terms
6. Quality Expectations
7. Ethical and Environmental Standards
Dr. Lasya KR - [Link]@[Link]
Influence of Sellers on Buyers
1. Product and Service Offerings
2. Pricing and Cost Structure
3. Reliability and Performance
4. Relationship Management
5. Flexibility and Responsiveness
6. Technology and Integration
7. Market Trends
Dr. Lasya KR - [Link]@[Link]
Economic Influence
Market Conditions
Cost Factors
Global Trade and Tariffs
Economic Growth and Investment
Consumer Spending Patterns
Cost of Capital
Supply Chain Efficiency
Regulatory and Compliance Costs
Dr. Lasya KR - [Link]@[Link]
Political Influence
Trade Policies and Agreements
Regulatory Compliance
Geopolitical Stability
Labour Laws and Regulations
Environmental Policies
Taxation Policies
Infrastructure Development
Foreign Policy and International Relations
Dr. Lasya KR - [Link]@[Link]
Legal Influence
Contract Law
Regulatory Compliance
Labour and Employment Laws
Intellectual Property (IP)
Trade and Customs Laws
Product Liability and Safety
Data Protection and Privacy Laws
Corporate Governance and Ethics
Dr. Lasya KR - [Link]@[Link]
Supplier’s Influence
Cost Management
Quality Control
Innovation and Development
Supply Chain Reliability - Delivery Performance, Flexibility
Risk Management
Inventory Management - Lead Times, Just-in-Time (JIT) Inventory
Sustainability and Compliance
Relationship Management
Global Sourcing and Complexity
Dr. Lasya KR - [Link]@[Link]
Technology Influence
Automation - Process Automation, Robotic Process Automation (RPA)
Data Analytics - Predictive Analytics, Big Data
Supply Chain Visibility - Real-Time Tracking, Integrated Systems
Communication and Collaboration- Collaboration Platforms, Digital Communication
Supply Chain Optimization- Advanced Planning Systems, Simulation and Modelling
Inventory Management - Automated Inventory Systems, Just-in-Time (JIT) and Just-
in-Case (JIC)
Supply Chain Integration- Enterprise Resource Planning , Application Programming
Interfaces
Risk Management - Risk Analytics, Real-Time Monitoring
Customer Experience- Personalization, Customer Relationship Management
Sustainability - Environmental Impact Tracking, Green Supply Chain
Dr. Lasya KR - [Link]@[Link]
Consumer Influence
Demand Patterns
Product Customization
Quality Expectations
Pricing Sensitivity
Delivery Expectations
Sustainability and Ethical Practices
Dr. Lasya KR - [Link]@[Link]
Government Influence
Dr. Lasya KR - [Link]@[Link]
Labor Influence
Dr. Lasya KR - [Link]@[Link]
Analysing Buyer’s Strength & Negotiation
Capabilities
Dr. Lasya KR - [Link]@[Link]
