Competitive Advantage Using Supply Chain Management

GAINING COMPETITIVE ADVANTAGE USING EFFECTIVE SUPPLY CHAIN MANAGEMENT 1.0 Introduction Christopher (2005, p.5) describes supply chain management as follows: â€Å"The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole† Until recently, supply chain management has been largely viewed as a necessary evil and the focus has been strictly on cost reductions. Today however, many are coming to the realization that supply chain management can be much more strategic, affording a company the opportunity to out-perform competitors. With supply chains becoming more elongated as they become more global, the pace of demand changes increasing and†¦show more content†¦Dell’s own forecast is posted to its extranet for easy access by their suppliers and other partners. Suppliers also have access to hub-level inventory holdings and are responsible for restocking the hubs and delivering to the factories on a consignment stock basis. This strat egy enables Dell to carry only four days of inventory while its competitors continue to hold 20-30 days worth. 3.0 Zara ZARA is one of the world’s most successful and dynamic apparel businesses. It began operation is La Coruna, Spain in 1975 and has built a reputation of continually seeking process improvement. Zara over the years has developed a strategic and unique supply chain management process that has put it ahead of its competitors. Its emphasis is on ‘permanent innovation and low prices’. Zara stores are digitally linked to headquarters; employees collect and share input from customers daily. The different teams understanding of directional fashion trends is further guided by regular inflows of sales data and other information from all of the company’s stores and sites around the world. This has also enhanced greatly the operating strategy based on the dual objectives of minimizing stock and responding quickly to market needs-even more effectively than its internationally acclaimed rivals. Zara designers come up with newShow MoreRelatedCompetitive Supply Chain Relationship Management Essay1416 Words   |  6 PagesOF COMPETITIVE SUPPLY CHAIN RELATIONSHIP MANAGEMENT PRACTICES IN ORGANIZATIONS PRACTICES THROUGH COMPETITIVE PRIORITIES. Over the years, the competition landscape for most companies has shifted from the highest-quality, lowest priced product or best performing product to the ability to respond to market needs quickly and get the right product at the right time to the right customer. This has in turn forced organizations to compete with their supply chain. Understanding supply chain management andRead MoreSupply Chain Management Essay528 Words   |  3 PagesSupply chain holds a special place in B2B e-business. 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Supply Chain Management as defined as Maximising added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market†. Competitive Edge through Core Competencies Todays business climate has rapidly changed and has become more competitive as ever in nature. Businesses now not only need to operate at a lower cost to