In an increasingly customer-centric economy, differentiating your business in a crowded marketplace is no simple feat. To gain a competitive advantage, businesses have traditionally looked to gain market share by either, offering a basic product at the lowest price or by differentiation – creating a product that is unique and desirable. Because of this, often overlooked or not even considered is the positive results that a well-managed supply chain management system can bestow – especially to those with global operations.
Initially, it may not be clear how creating a connected supply chain can gain you a competitive advantage. However, the supply chain is vital to enhancing cash flow. True inventory visibility is the lifeblood to the overall health of any organization that produces for public consumption. To achieve this the customer purchasing cycle needs to be connected with various business areas in sync; including sales, production, warehousing and distribution. The end goal is to give a complete finished product to the customer when required and each business area must understand its function and execute when required.
What should you be looking to improve?
There are many factors which influence the overall success or failure of an organization’s supply chain:
Differentiation is in front of you
With many organizations ultimately overlooking the importance of their supply chain, by bringing it to the boardroom table, you can use it as your differentiator. In a crowded marketplace, innovating to a more customer-centric supply chain can have many positive results, from an increase in sales and greater market share to reduced costs and better cash flow. By conducting a supply chain assessment you can establish how you can make improvements and gain a competitive advantage.