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Wednesday, October 29, 2014
BLUE OCEAN STRATEGY USING SUPPLY CHAIN MANAGEMENT FOR RETAILERS & MANUFACTURERS
Too many manufacturers,
wholesalers, and retailers are doing the same old thing when it comes to supply
chain management.As a result, these
firms compete on price.They have to
because the businesses lack competitive differentiation that new supply chain
management with its service provides. Companies
basically do the same things.They have
created a de facto world of commoditization. All this means missed sales and reduced
margins.Why do this?One answer is they are afraid to change.
You can easily tell
these firms.They think of ecommerce as
shipping orders via UPS and similar firms.They have much money tied up in inventory—and many are products which do
not sell or are out-dated.They
rationalize about the low cost of capital to explain inventory levels.But they had the same problem when interest
rates were higher.Yet with all the
inventory, they struggle to deliver orders, complete, and on-time.
The blue ocean supply
chain reinvents supply chain management and—
*is designed from the
customer back through the company and to suppliers. That provides way to
incorporate service. It is not based on just picking and shipping orders from
*is segmented to tailor
and provide best service to key sectors.That is contrary to the monolithic supply chain now used.
*is built on integrated
process throughout the entire supply chain.This is different from trying to cobble dysfunctional company activities
integrated technology that provides visibility across the supply chain, uses
RFID at the item level, and works on all devices.It is more than WMS and using carrier
*uses logistics service
providers that complement innovative supply chain service.It is about performance, not low price bids.
The new supply chain
enables a firm to be more responsive to customers. It compresses time. All of
it builds brand and creates competitive advantage and value to customers.Innovative supply chains support blue ocean business
strategies for global e-commerce and multichannel sales.All of this means increased revenue and
Where are you on the
blue ocean supply chain for your industry and market—innovator, early majority,