The Evolution of Competitive Advantage in Supply Chain Management

Competitive advantage has increasingly shifted from the organization level to supply chain level. More critical and intense global value chains forefronts substantial changes matters projected in supply chain utility (Stevens & Johnson, 2016, pp.19-42). Competitive advantages had been a thing of organizational level only, but there are significant changes which have led to drastic changes. For instance, advancement and subsequent application of technology in supply chain has made it a favorable business which has attracted lots of investors all over the world.

Analysis

            There are lots of changes which have taken place within the supply chain management that has made competitive advantage to shift. Firstly, there has been the introduction of high-tech shipping and trailing. Existence of software like flash view has made Savvy Companies to combine all matters concerning supply chain management in one location (Stevens & Johnson, 2016, pp.19-42). This software enables the business owners to digitize and organize inventory, control shipping process and develop electronic invoices within their warehouses. This has led to the reduction in the cost of productions, and in turn, increasing the profit of companies. Also, the supply chain has adopted the use of radio frequency identification (RFID). The RFID chip is put in all products on transit which enables business owners to track their goods while on transit. The idea has reduced wastage of time and issues of theft along the way which has saw the reduction on the insurance covers paid as premiums on the goods. This in turn increases profit of business owners.

            With the increased use of social media globally, the competitive advantage has shifted to the supply chain level. Social media enables the business to develop open communication with customers thus increasing the visibility of the Company, improve the products demand and lower operating costs. In addition, social media uses cost effective and time efficient marketing approaches that enable the firms to get a significant market share of their products within a short period (Cao et al., 2015, pp. 24-41). Also, supply chain management uses social media to interact with customers, and can therefore use their feedbacks in regards to conditions which can impede delivery schedules and developed digital update concerning inventory. As a result, it has made supply chain be a favorable business globally.

            The use of robotics in warehouses has shifted the supply chain management to greater heights. These are machines that can pick and package goods within the warehouse without any much assistance of human being (Stevens & Johnson, 2016, pp.19-42). The technology has reduced the costly human labor and increased the efficiency of work. Also, it has improved the productivity and delivery process making customers satisfied.

Unlike the organization level, supply chain management has moved to the places where they can get potential clients. It has outsourced its delivery services to cities and even small towns where it would be easy to reach for the clients (Cao et al., 2015, pp. 24-41). Besides, the use of third-party logistics services has made the process of products delivery much efficient and convenient to low-income earners. As a result, it has created lots of revenues doing the business to thrive well. Supply chain users have even began manufacturing their products and deliver to customers.  They only produce goods based on existing order which in turn ensures that there are no wastages.

Conclusion

All in all, the increased innovations in supply chain management, especially with the introduction of technology have brought significant competitive advantages. This has made SCM be a favorable business across the globe as compared to organization based businesses. This is especially true considering the fact that the cost of production has reduced and therefore, encouraging their growth.

References

Cao, Z., Huo, B., Li, Y., & Zhao, X. (2015). The impact of organizational culture on supply chain integration: a contingency and configuration approach. Supply Chain Management: An International Journal, 20(1), 24-41.

Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42.