Global Competitiveness

4571 Words19 Pages
Global Competitiveness: Role of Supply chain Management

Business today is in a global environment. This environment forces companies, regardless of location or primary market base, to consider the rest of the world in their competitive strategy analysis. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations or technology innovation in other countries, if some of their competitors are competing or are located in those countries. Companies are going truly global with Supply-chain Management (SCM). A company can develop a product in the United States, manufacture in India and sell in Europe. Companies have changed the ways in which they manage their operations and logistics
…show more content…
The ultimate objective of SCM is to achieve a ‘strategic fit’ between the company’s competitive strategy and supply-chain strategy. This strategic fit can be achieved by Understanding the customer demand, which helps the company to define costs and service requirements and understanding the supply chain that helps the company to design and manage its supply chain in accordance with the customer’s demand. If any mismatch exists between what the supply chain is capable of doing with respect to customer demands, the company can either alter the structure of the supply-chain design or alter its strategies.

During the industrial age, companies succeeded by how well they could capture the benefit from economies of scale and scope & technology. The success accrued to companies that could embed the new technology into physical asset that offered efficient customer service. The emergence of the retailing era, which stared in the last decades of twentieth century, made obsolete many of the fundamental assumption of industrial age. The retailing age environment requires new capabilities in organization for competitive success .the ability of a company to mobilize and exploit physical, tangible assets enable an organization to develop customer relations and loyalty, introduce innovative produce and services, produce customized high-quality products
Get Access