Analysis of Shift in Competitive Advantage from the Organizational Level to the Supply Chain Level

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There has been a global shift in competitive advantage from the organizational
level to the supply chain level as a result of the generation of completely new product lines. Such identifiable features of products including a product’s longevity and competition with other companies is no longer appealing. (Denning, 2013). Rather, customer’s rely on increased efficiency and the roll out of constantly new and innovative products. This can only be achieved at the supply chain level rather than at the organizational level where competition and market industries are managed (Denning, 2013). The supply chain level dictates how productive and efficient a company is. The only means by which the new capabilities and skills of a company can be tested is through the consistent roll out of new product lines through its extensively growing supply chain (Cabral, Grilo & Cruz-Machado, 2012). If the company can proceed with a product from its initial development to its roll out through the supply chain, then it stands a greater chance of being more successful and being able to take into account the needs and requirements of its customers. The logistics industry worldwide is so dynamic and high paced that supply chains also need to be efficient and comprehensive (Denning, 2013).

The Lean Supply Chain contributes towards competitive advantage and greater efficiency via its focus on cyclic planning (Nicholas, 2010). Cyclic planning involves effectively planning and developing products within a factory whilst at the same time, smoothing the capacity load of the industry to allow for greater efficiency and a better quality of product being delivered to customers Packowski & Francis, 2013). The process is about refining products before they are rolled out to ensure that the process is not only efficient but that more customers will be satisfied with the final product and that they have greater access to the supply chain process (Packowski & Francis, 2013).

    References
  • Cabral, I., Antonio Grilo, & Cruz-Machado, V. (2012) ‘A decision-making model for lean, agile, resilient and green supply chain management’, International Journal of Production Research, 50(17), pp. 4830-4845.
  • Denning, S. (2013). ‘Its official! The end of competitive advantage’, Forbes Magazine, Available from: http://www.forbes.com/sites/stevedenning/2013/06/02/its-official-the-end-of-competitive-advantage/
  • Nicholas, J. (2010) ‘Lean production for competitive advantage: a comprehensive guide to lean methodologies and management practices. Boca Raton: CRC Press: Chapter 2: Value Added and Waste Elimination, p.21-56. Available from: http://www.vitalsource.com (Accessed: 04 June 2015)
  • Packowski, J & Francas, D. (2013) ‘Practitioners section – Lean SCM: A paradigm shift in supply chain management’, Journal of Business Chemistry, pp1, Available from: http://www.businesschemistry.org/article/?article=180