Companies Outsource Analysis Essay

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  • Words: 447
  • Category: Database

  • Pages: 2

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Supply chain management also streamlines the buying or selling process that companies must engage in. If supply chain management is not done well, then goods and services will not be produced or delivered in the right manner and this may eventually hamper conformation processes. b) Product selection is also an inevitable function in supply chain management.

This is because through the latter mechanism, companies can be able to standardize their products. Also, through logistics handling, products may be graded depending on their respective categories and this goes a long way in improving marketing functions or competitive advantage.c) Supply chain management can also be linked to price through a series of ways. First of all, the decision to offer discounts to retailers can increase the competitive advantage for any one product and this can go a long way in promoting a company’s ability to excel.

Additionally, many retailers are well aware of the pricing of a number of competitors. Consequently, when their suppliers offer them certain low price ranges, then they may opt to take their business elsewhere and this goes a long way in promoting their performance. (Gallagher, ODwyer & Maher, 2000)d) Supply chain management can impact on a company’s ability to compete though value added services. For instance, a large number of companies use the aspect of fast and efficient delivery as an item that promotes competitive advantage. Consequently, when those respective companies are able to streamline their supply chain management functions to achieve those goals, then they can boost their competiveness.

e) Relationships and experiences are also another pathway that supply chain management can utilize to add to a certain company’s competitive advantage.For instance, supply chain management provides a link between suppliers to a certain company prior to production and they also act as link to the respective retailers. This means that through this function, the company can easily understand the mechanisms that other companies use to source their products and this therefore enhances a certain business process. Additionally, marketing is fundamental in understanding the way the world of retail works. They usually add efficiency to these relationships and also promote a wider client reach through the processes that they institute.

ReferenceGallagher, S. , ODwyer, M. & Maher, J. (2000): The importance of a distribution strategy within the farmhouse cheese industry, Irish marketing review, 12, 3, 67-78 Harrison, T. , Hau, L. & Neale, J.

(2005): The practice of supply chain management, Springer Publishers, p 35-46 IIMM (2007): Automated warehousing perspectives and trends; Associated press, p 12-30 Hamilton, S. (2008): Must Chemical companies outsource logistics to save money? ChemLogix White paper, p 3-17 Paul, S. (2007): The impact of technology on distribution of books; Publishing research quarterly, 4, 4, 87-90

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