Though many organizations practice the concept of Supply Chain Management for quite some time, it has been observed recently that the model can be of competitive advantage for business entities if carried out appropriately.
At the initial state, a business organization should set competitive priorities regarding its various internal and external customers. These priorities should then be linked to supply chain and logistic processes.
The cost strategy emphasizes delivering the products to the consumers or end-users at the lowest possible price without compromising the quality of the goods or services.
Time strategy should be done in terms of delivery speed, product development time, and customer response time. This should be reduced to the greatest extent.
High-quality goods and services according to the expectation of the customers should govern the strategy for quality.
Flexibility strategy concerns customization concerning units or quantity as demanded by the end-users.
Uses of Supply Chain Management Competition
The Supply Chain Management Competition model is used to tackle innovative ways prevalent in the modern business world. The various uses of the competitive model are as follows:
Computerized shipping and tracking â€“ Latest technologies and online-based software such as transportation management system could reduce the errors of shipping and logistic processes. Economic Resource Planning (ERP) and Customer Resource Management (CRM) make the businessmen tech-savvy and compile supply chain aspects in one place. Data regarding inventory, shipping, transportation, and bill lading are stored in the software and can be viewed in the future to make important business decisions.
Radiofrequency identification â€“ This technology is of immense benefit to traders and marketers identified tracked with the help of the tracking software installed in the organizationâ€™s computer system. Any abnormalities in the supply chain networks are detected easily and rectified. This increases the efficiency or competitiveness of the supply chain management system.
Challenges faced by Supply Chain Management Competition
The Supply Chain Management Competition requires smooth delivery of goods and services to the retailers or end-users from the suppliers. For this purpose, it undergoes several challenges as follows:
Increased costs â€“ If the costs involved in the network of supply chain increase, profits go down. This is a major concern for business organizations. Lack of accountability of these costs may result in increased operational expenses.
Multiple marketing channels â€“The presence of multiple marketing channels for consumers to buy from may pose a problem to the supply chain network. Business organizations should adapt proper coordination between the various marketing channels and supply chain networks to deliver goods or services.
Varying consumer demand â€“ The demand of the consumers vary time to time. Supply chain networks should change themselves to adapt to the changing needs of the consumers.
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