In order to support the business strategy marketing

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in order to support the business strategy: marketing, operations, purchasing, distribution, finance, and organizationfunctional support is imperative given the boundary spanning nature and high dependence on logistics, marketing, and operations of supply chain management (SCM).Achieving a Competitive Advantage
Corporate success in the marketplace can result from two aspects:Cost and/or productivity advantageadvantage comes from offering the lowest cost product or serviceValue advantageadvantage comes from providing a product with the greatest perceived differential value compared with its competitorsCost-Productivity Advantage Typically each market has one competitor who is the low-cost producer and who has the greatest sales volume in the particular marketeconomies of scale is a contributor, as it enables companies to spread fixed costs over a greater volumeDerived from the traditional learning curve, the experience curveasserts thatworkers become more skilled and efficient with experienceexperience reduces organizational costsprocessing at a larger volume also reduces organizational costsAn efficient supply chain network can increase efficiency and improve productivityValue advantagecustomers don’t buy products, they buy the value or benefit provided by these productsthe intangible benefits a product provides is a driving force behind a decision to buy a productthe possibility exists that a number of different products provide customer’s valuevalue segments: different consumer groups place different value on different product benefits; a way to gain a value advantagemore and more companies are focusing on service as a way to add valuefor companies to remain competitive they normally aim towards cost leadership or value leadership; if they are skilled enough, they attempt to reach bothSCM as a source of valueSCM provides a powerful way for companies to achieve a cost-value advantage over their competitors-it is also a means to reach the coveted position of cost-value leadershipanother way to reach cost-value leadership is to develop strategic differentiation based on service excellence, while yet another way is through the introduction ofnew supply chain technologiesBuilding Blocks of Supply Chain Strategy
The development of a supply chain strategy involves consideration of each of the traditional business functions and their impact on the supply chain. These include the following:operations strategysourcing strategydistribution strategycustomer service strategyEarlier, companies viewed these components as separate of one another; today, successful companies recognize these functions are interdependentOperations strategyThe operations strategy refers to the series of decisions made by companies about how it will produce goods and servicesProduct positioning strategy: refers to the degree of product customization a

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