"Globalcast was hardly ever really in touch with the best customer of the supply chain but sold its product to other commercial businesses from various companies, therefore the marriage with its customers may be classified as a 'Business to Business (B2B)' romantic relationship. (Slack et al, 2007)
Globalcast introduced invention to the business. The major reason their customers remained with them was their overall procedure towards the business. They provided quality products with their customers, and also provided extra services. They stored in touch with their customers for a longer period of your time, and helped their customers in quotations, complex advice etc. "
Due with their innovative methodology, Globalcast received a great deal of support from other customers. It is quite noticeable that Globalcast took each order significantly and made its business customer oriented
Also, the relationship of Globalcast using its customers advanced from short-term cost-based romantic relationship to a strategic value added romantic relationship.
Also the business grasped that efficiency and on-time deliveries would ascend in the supply chain only if you screen the discrete phases of the process, ensuring the clients enjoy
certain benefits. "Globalcast made things less costly but more efficient and offered the cost advantages to its customers. The most important facet of this romance was scheduled to word-of-mouth recommendations from its satisfied customers. These customers also approached Globalcast for just about any new design purchases implying that Globalcast excells by encouraging their customers and growing with them".
IMPACT OF THE RELATIONSHIPS ON GLOBALCAST'S Development:
Globalcast's expansion was motivated by its relationships using its customers.
"Their engagement in the pre-design stage was the reflection of these interest in the business with the customer.
Following up enquiries with a quotation was their way to secure the offer. To build the foundation, they made technological advise appointments and by writing the info, they made gains. By simplifying the mould disign, these were in a position to sell it to the clients and get rid of waste in the form of unused finished goods. "
MAJOR MARKET CHANGET:
The first change that took place was that many of its major customers started out to move their functions to the developing economies. " The reason behind this was to enjoy the great things about low-cost labour, material and over mind costs, and to get into the potential, profitable markets of these developing economies.
The next change was the standardizing with their products globally. This was because of the expansion. They knew that to surpass the requirements in the markets overseas, they had to keep up some standard designs throughout. This resulted in the upsurge in production with a decrease in the unit cost. "
The "third and most improtant change in the market was when the customers started requesting the suppliers to do the value addition work with the products. The reason why either being the reluctance of the customers to bear additional costs or lack of the assessment facilities for the moulds. "
IMPACT FROM THE CHANGES IN THE MARKET ON GLOBALCAST:
Though "Globalcast acquired a good relationship with the clients, the changes in the market place were fast and they weren't be able to interpret and respond to the marketplace changes consequently. Globalcast could have used its factories throughout European countries to respond to and change changes but its customers find the rapidly producing economies, which can be outside European countries. This did not help Globalcast's business. "
However, " there was a chance for Globalcast to grow along with its customers and benefit from the developments on the market through partnership. Corresponding to Russell & Taylor (2000), "Partnership processing is an enterprise culture that stimulates available communication and mutual benefits in a supportive environment built on trust. Partnering human relationships stimulate constant quality improvement and a decrease in the total cost of possession. Partnering is usually known as a change from traditional open up market bargaining to cooperative buyer and owner relationships. " As a result of these partnerships, Globalcast got the opportunity of becoming the sole distributor of the customer but, to engage in to the partnerships and become the singular supplier Globalcast needed to build its factories adjacent to the customers'. To achieve that it could have to leave its existing local factories unused. A hold off in deciding whether to look or not would give the rivals an chance to cash on".
Standardization of the "products was also a serious challenge for Globalcast, because these were not able to meet the global demand. As the price tag on the merchandise from Globalcast assorted according to the costs in several locations, globalization and standardization made customers look for the lowest price in Globalcast products making the margin low with the costs being dictated by the clients. The worthiness added work required by the clients didn't always produce good results as some simple value addition works do have small success but some needed more technical work and this added to the production costs which triggered a reduction in profits. In addition, it affected the lead time in some conditions. "
NATURE OF GLOBALCAST'S RESPONSE TO THE CHANGES IN THE MARKET:
Globalcast's "response was proactive in the framework of the worthiness added work for its customers. They already had the technical knowledge because of this and had been doing it, even prior to the customers demand. However, Globalcast's response to the changes was reactive in mother nature. They were not prepared to react to the moving activities of the clients to the growing economies. Standardization of product designs also posed as problem in front of them. They started taking measures following the changes took place. The reactive character is outlined by the fact that the General Manager of every manufacturing facility acquired to guard his business. "
CHALLENGES THAT CAME AS A DIRECT EFFECT OF MARKET CHANGES:
One of the "major difficulties was to go its factories nearby and that was not really advisable because on its large numbers of cutomers. Their customers wished Globalcast to determine the factories near their sites if Globalcast didn't react to the change, it could provide an chance for its competitors to gain benefits. Also, building new relationships with new customers would not be easy. This affected Globalcast's output.
Due to the standardization of the merchandise design, customers acquired the choice for low cost products and by not adapting to the would supply the competitors an advantage.
Impact of the third change was that, Globalcast needed to bring in some additional machinery to meet up with the customer's demand. For this they had a need to tolerate additional costs, do some value added work for the customers and stay competitive on the market. "
STRATEGIES GLOBALCAST SHOULD CONSIDER:
The technical skills has served as a secured asset to Globalcast. They put it to use to develop the worthiness added work ideas which, in some cases, grow to be of up to 10 times profitable. One of the major strategies Globalcast should think about is becoming a single sourced supplier. This can enhance the romance and insure more commitment from the customers. Also they should think about the use of the nimble source. This will help to cut down the costs. They are able to also purpose at specializing the discrete phases of the look process so as to achieve rigidity.
The biggest "crises was copping up with the marketplace changes. For this Globalcast may reorganize a few of its manufacturing facilities. As the customers want Globalcast to determine its facility next to their factories, Globalcast can in fact move some of its factories from the Western european region. This might help them improve the production and also maintain a solid relationship with the clients. These facilities can be used to cater to the customer's demand for value added works alternatively than keeping them unused. This will make them preferred distributor, which will be beneficial in the foreseeable future.
They may also consider developing a system of rate for their existing orders. This plan is particularly helpful in a fresh location where forecasting sales is difficult and can also assist in reducing the terms dictated by the clients. "
Supplying global customers is the main stay of the strategic plan for the new ten years. Therefore, it can rightly be said that the success of the source chain lies in the co-ordination of activities and co-operation between your business entities in it.