opportunities for increasing customer

A Transaction cost is a cost incurred in making an economic exchange (restated: the cost of participating in a market) Due to rapid changes in internet technologies, transactions cost have fallen in many areas. The main purpose of supply chain is to minimize the total supply chain cost thereby increasing the total supply chain profit for all participants (suppliers, manufacturers, distribu-tors and others who participate in this process) The premise of collaboration in supply chain performance improvement is that supply chain collaboration should look at developing close work on relationship marketing, define commitment as an exchange partner believing that an ongoing relationship with another is so important as to warrant maximum efforts at maintaining it; that is, the committed party believes that the relationship endures indefinitely. When commitment is honored under such a positive environment, the transaction cost is set to decrease noticeably because trust allows each party to act in good faith, thereby skipping such tedious transactional activities as checking the accuracy of invoices, quality of products, endless communications to resolve differences, discrepancies etc., (Dyer and Chu, 2003) In order to achieve alignment between demand creation and fulfillment this basis for differentiation should change to buying behavior. We have to explore the

responsiveness through the alignment of demand creation and fulfillment by means of empirical studies of six supply chains in three sectors (electronics, process industries and third-party logistics). There must be a strong trust relationship between buyers and suppliers, Customer responsiveness cab be increased in such a way, that customers have a trust Product, Volume, Mix, and Delivery, all of which are related with different time horizons, , and can be present as either potential or demonstrated responsiveness. It is argued that, supply chain is based on different levels of responsiveness at different tiers, depending on the configuration of the individual nodes, as well as the integration .All these four types are interrelated with each other, there must be a product, its volume is also determined, whether it should be positive response or negative. Mix and in time delivery also matters, these four components are basic theme of SCR Some innovation for which we can identify pretty clearly that some single company or individual(s) was/were responsible for the breakthrough. The innovation had a deep and lasting impact on supply chain practice Transaction Cost Economics (TCE) was once described as revolutionary in economic theory. Even though this seems to

be a bit excessive, TCE is a major approach to combining the rigorous instruments of microeconomic analysis with the practical relevance of incomplete markets. Instead of comparing relevance versus rigor, TCE offers the opportunity to combine both aspects through scientific research that combines a sound theoretical basis with concrete implications for management 1. Taylorism. 10. Toyota Production System. 2. Transportation Load Centre. 3. DRP (Distribution Requirements Planning) 4. The FedEx Tracking System. 5. The Universal Product Code. 6. The Ford Assembly Line. 7. Economic Order Quantity (EOQ) 8. The Ocean Shipping Container. 9. P&G Continuous Replenishment. According to Ronald Coase (1937), every company will expand as long as the company's activities can be performed cheaper within the company, than by e.g. outsourcing the activities to external providers in the market. According to Williamson (1981), a transaction cost occurs "when a good or a service is transferred across a technologically separable interface". Therefore, transaction costs arise every time a product or service is being transferred from one stage to another, where new sets of technological capabilities are needed to

make the product or service. All the time, supply chain requires innovations, but according to Dan Gilmore-Editor-In-Chief(Supply Chain Digest) Dec.3,2010,Supply chain has top ten innovations all the time. An effective network is that in which there is minimum lead time. As due to new challenges, customer responsiveness SCM is necessary for new competitive conditions. However, there is a gap between actual and prescribed stage. 1.Bargaining cost By innovation means the new technology or new product or new technology is introduced. In supply chain network innovation is generally consider as improvement in the method through which the flows of information, product and fund can easily flow. But to gain competitive advantage it is necessary to differentiate the product from our competitor product. Supply chain management processes, those that span multiple organizations and focus significantly on the flow of goods, information, and funds can be quite complex, requiring intra- and interorganizational coordination and collaboration Communicating effectively with customers. Contemplation as professional. Customer needs differ so the professional should be aware of the nature of complaints. Some are simple and some are complex in nature. Some requests show an ambiguous status so the customer relations officer

should devise such questions that can cover all the aspects of related complaints. Once the process of need identification is completed then acknowledge that need and make sure to fulfill that need as soon as possible.

supplier must have covert it process in such a way that reduce cost, improve responsiveness and increase performance. In supplier responsiveness includes

Innovativeness
Innovativeness has a great effect on any product or service, as it helps to grow rapidly and gain a competitive edge in a market place. If manufacturer supports its suppliers innovations, it eventually leads to supply cost reduction, so there should be a chance that innovativeness reduces the other cost, and it is beneficial for supply chain network. Innovativeness means, virtue of introducing new ideas, and the ability to think and act independently It is about creating something new, or elaborating the existing one, in a new style that it must have a innovative and unique look. 2.JIT JIT stand for just in time delivery means there is appropriate supply of goods according to the demand of the market. The best supplier is who can fulfill the market demand. An effective network is that through which just in time delivery can be possible. 3.Minimum lead time Once the decisions have been made by the authority then clearly communicate it with customers. The expectations of customers should be built realistically to become more responsive. A competitive edge can be taken by effective communication with customers until the complaint is solved. 3.Seeking information Seeking information cost is that which incurred on the searching require product in

Customer Responsiveness
Customer responsiveness refers to the aptitude of attracting and retaining the cherished customers, understanding customers' needs and wants and by providing high quality service. Taking rapid strokes for meeting explicit needs of customers is known as Responsiveness. 1.Feedback and action Focusing on acquiring and retaining customers can boost sales and improve profitability, notes the Peppers & Rogers Group, a consulting firm that specializes in customer-based business strategies. However, testable micro analytic data is yet to be developed for empirical testing such a relationship in the functional areas in supply chain operations. We should not, nevertheless, be discouraged since despite what almost 30 years ago may have appeared to be insurmountable obstacle to acquiring the relevant data[which are often primary data of a micro analytic kind], today transaction cost economies stands on a remarkably broad empirical foundation (Geyskens, Steenkamp and Kumar, 2006). 2.Implementing cost In innovation process first the managers have to see the market and business environment for ground work. For this purpose data searched. In the todays challenging environment the

market at lowest cost and utility of the product. Bargaining cost is cost which occur on reaching on at agreeable agreement between two parties .Implementing cost is the cost which occurs on implementing the contract. With the effect of outsourcing the transaction cost decrease Some stages of responsiveness are identified which includes: Taking needed action. The customers always prefer exact and quick customer services. The customer service desks should be responsive enough to reduce nightmares. These desks or points should have an efficient system of collecting responses from customers through telephone calls, internet web-pages, broachers and personal complaints cells. In this process customers are involved and informed about further actions on customer's complaints. It is in fact giving the value to customers for building loyalty and trust. The fulfillment of needs require to have a complete action plan. The responsible authority should act as professional and a consultant to overcome complaints. They should have critical judgment ability for choosing suitable action against that specific complaint. They should take decisions strategically to minimize future risk. The supplier must take feedback about their product and according to the need and demand should take proper action. There are four types of responsiveness are identified: There is a lack of comprehensive definition of SCR, as well as a defined relationship between responsiveness and flexibility. These 10 innovations occurred all the

time in supply chain management; each and every innovation has an effect in network design, as well as whole SCM chain network. Basically innovations support the SCM design network, as these are the responsible for rapid growth and market share. As we know that, SCM is an integrated approach, so whenever some changes occurs, it hits all the chain players.

Transaction Cost
Transaction cost is basically about, is how the price of final goods and services in the market. Many authors spend a considerable amount of time developing the transaction cost theory using external factors (e.g., Dyer and Chu, 2003, Williamson, 1981). Porter (1996) Transaction cost refers to the exchange of the resources of a firm with the outside environment (market). Transaction cost is the cost which occurs in the selling and buying of goods. For example brokerage commission. In supply chain network this cost categorize in three heads Understanding & realizing customers' needs.