Supply Chain Strategy And Competitive Priority Essay

705 Words 3 Pages
M1A1 Supply Chain Strategy & Competitive Priority How do companies like FedEx and Walmart manage their supply chain systems to maintain a competitive advantage in today’s business world? According to Nada Sanders (2012), it’s done through the active management and implementation of the five primary competitive priorities; Cost, Time, Innovation, Quality, and Service, as well as an effective supply chain strategy. Supply chain strategy design is composed of the five competitive priorities, and how those priorities are implemented and managed helps create and maintain a competitive advantage in the business world. FedEx and Wal-Mart both utilize competitive priorities to effectively operate an expansive Supply Chain Management (SCM) system, but the priorities are arranged differently to accommodate their individual business models.
FedEx’s priorities are geared towards time and service, the backbone of an air and ground freight delivery system that provides time sensitive logistical services to its customers (FedEx, 2011). Supply Chain Management (SCM) is a total system for FedEx, in that without the integration of all of the fundamentals of SCM (products, information, funding) the organization couldn’t operate effectively, if at all (Sanders, 2012).
This doesn’t imply that cost, innovation, and quality are any less important, but the business model of FedEx determines how the priorities are allocated. FedEx has been incredibly innovative in the development of air…

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