Supply chain cost management and value-based pricing |
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Authors: | Martin Christopher [Author Vitae] John Gattorna [Author Vitae] |
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Institution: | a School of Management, Cranfield University, Cranfield University Bedford, MK43 0AL England, United Kingdom b Sydney Business School, L14, 175 Liverpool Street, Sydney, NSW 2000, Australia |
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Abstract: | Continued deflationary trends in many markets around the world are creating greater pressure for cost reduction in order that margins can be maintained. Customers and consumers are increasingly value driven and consequently less brand or supplier loyal. In this challenging world, there is a growing recognition that creative pricing strategies combined with effective supply chain management provide opportunities for significant cost reduction and increased profits. This paper presents evidence to support this viewpoint and suggests an approach to supply chain alignment that can enable cost reduction opportunities to be identified and higher profits to be achieved through collaborative strategies. |
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Keywords: | Supply chain Cost management Value-based pricing |
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