Impact of Supply Chain Synergy on Marketing Effectiveness of Business Organizations

Abstract

Today’s fierce competitive/s global business arena has brought about tremendous challenges and pressure on business organizations to strategize and develop new ways to increase their competitive advantage and sustainability in the market space through effective synergy of all the partners involved in their supply chain operations. This paper examined the impact of supply chain synergy on the effectiveness of business organizations. The paper notes that that supply chain synergy is vital in enabling firms to achieve competitive advantage and meet customer’s satisfaction, as well as promote business efficiency. Additionally, SCM improve the performance of both individual firm and the entire supply chain for the benefit of all stakeholders. The paper concludes that supply chain synergy enhances firm’s competitive advantage, increase profitability, and provide seamless supply chain which enables for a seamless flow of information sharing. Moreover, effectives supply chain synergy leads to improved product quality, better risk management, cost reduction, as well as economies of scale in productions. It is recommended among others that supply chain partners should jointly engage in planning, decision makings and implementation across the supply chain to enhance better utilization of dedicated investments among the partners. In addition, there should be proper assessment before and after merger or acquisition to enable for full evaluation of all possible network choices and challenges, for the synergy to be successful. Moreover, there should also be a high level of information sharing, trust and transparency among the partnering firms to make them to be more committed in achieving their predetermined joint goals and thereby improve the marketing effectiveness and the general business performance.