In recent years a growing number of companies have realized that the supply chain is not just a cost, that of bringing products to the end customer. Instead, they have realized that it can become an important element of competitiveness, with which they can differentiate themselves from competitors, position themselves in the market, increase sales and offer new services to customers.
The supply chain can become a strategic factor of competitiveness, the needle in the balance able to satisfy or disappoint customers, to bring or not bring value. The essence of a company can be seen as its ability to deliver more value to customers than its competitors. This competition used to take place mostly in the field of prices, whereas today it is played on several levels, not least that of the supply chain.
A thorough examination of your company’s supply and distribution chain will reveal several areas where you can add value. Your supply chain approach can’t be limited to logistics alone: it needs to be broader and include other aspects of your business such as planning, information sharing and value-added activities, from raw material sourcing to final distribution.
New technologies are bringing important changes in the supply chain world. These new developments will require growth and change for any company that wants to remain competitive, so this is the ideal time to recalibrate the entire supply chain strategy.
Developments in the software world also allow for a more holistic approach to planning and risk management; the ability to use data to predict customer needs has never been more extensive. Faced with these developments, it is important to consider the areas and strategies with which you can deliver value so that your company is ready to use new tools to solve old problems more effectively.
What about strategies?
Strategy based on cost
A strategy based on cost is not only viable but to a certain extent, it is also necessary if your company wants to be successful. The focus on costs alone can be at the expense of flexibility and to some extent profit, but it can be a strategy that allows you to win a target group of customers who prioritize the final price as a factor in choosing a product or supplier. Also in this case the supply chain becomes an important element of competitiveness.
Innovative strategies for a more competitive supply chain
The most innovative companies continue to evolve and reinvent their supply chains, even though they have already achieved a leading position in their industry. In this way they are able to:
-respond to changes in the economic, technological, and competitive environment;
-exploit new opportunities more effectively than their competitors.
Supply chain and business strategies
What is the strategic value your company focuses on? Product innovation, superior service, lower prices? Whatever it is, make sure your supply chain is helping you achieve your goals.
The timing of supply chain management in separate tiers is coming to an end. Today, the goal of the most innovative companies is to manage a single supply chain (end-to-end).
we can conclude that in many ways your business is your supply chain. How you optimize your ability to deliver quality products or services to your customers is the difference between success and failure.
Technology is evolving rapidly and allows you to intervene more and more in your supply chain according to your goals: deliver more value, reduce time or costs, increase flexibility, care for customers, etc. At the heart of it, all must be a clear strategy and effective planning to make the most of your supply chain and gain a competitive advantage.
Read more: What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage