Essay about Competitive Advantage Of Supply Chain Network

1644 Words Apr 26th, 2015 7 Pages
Introduction

A supply chain is defined as a system through which companies deliver their products and services to their customers. The supply chain network begins with the basic components starting from suppliers that supply raw materials, ingredients, and so on and from there, network connects the supplies to the manufacturer who builds, assembles and delivers a product. The supply chain continues by distributing the product to the shelves and then to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center (Ehring, 2006).
The key success of a supply chain is determined by the end customer. If companies deliver the right goods to the right customers at the right price and time it doesn’t mean that the companies will be leaders in the market, however, in order to survive and stay competitive, companies need to pay attention to the organization of their supply chain. Consequently, competition between supply chains has become more important than the competition between individual companies (Christopher, 1992).
Competitive advantage is very important in the business world and it represents a capability of a company to create defensible position over its competitors (Li & Rao, 2006). This goal can be reached in several ways, starting from a well-built collaboration with other companies and by working together as one unit to make the whole supply chain competitive. Moreover, the main strength of this strategy requires…

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