Effective Market Positioning Through Supply Chain Mapping

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The summit era of mass manufacturing where all the handling aspect in delivering a product being done in 1 roof is no longer a trend. Companies who tend to handle internal procedure only and squeeze the providers for price reduction will lose their competitive advantage. As clients needs fast change and products life cycle are shortening, companies today not just must control their internal procedure effectively, and they must also manage their outside providers more effectively. Managing the supply chain as a whole will produce the capacity of the enterprise to identify weaknesses and strength in the whole supply chain. To compete, it is not sufficient by just identifying the corporation’s strength but also identifying what is the supply chain partner’s strength too. By managing the supply chain and removing waste procedures, the price reduction will be important and in precisely the exact same time value addition to this item.

Dell for example, has Use its supply chain mapping hong supply chain mapping hong kongkong as a special advantage over already recognized PC manufacturers by eliminating process waste in their entire supply chain of producing Personal Computers. Dell identified by removing retailers from their supply chain, the business may response much faster to client is demand in contrast to getting a retailer to promote their PC. Dell has able to decrease waste by identifying the weaknesses of the whole procedure and remove it as soon as possible. At the end of 1990s, the tendency of speedy delivery of goods and services begins to emerge. The trend has become a crucial factor of winning new clients and keeping a company as market leader. This emerging trend has generated the demand for a more effective management approach of fast delivery of goods or services to the users.

The supply chain management strategy gives the ability of higher flexibility in producing new products in a faster level. Supply Chain Management generates the capacity of the enterprise to respond far more quickly to the clients’ fast demand patterns laboratory certification online hk. As Martin in his book ‘Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service’ states, ‘greater market share and customer loyalty can be obtained by fast and reliable response to clients’ changing needs’. The entire life cycle of product nowadays demands a quicker response from the business. The rapid change demand pattern requires extensive information sharing among the supply chain partners. Companies that are not fast enough to deal with the fast changing demand of end customer will lose a certain amount of market share.