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Supply Chain Management (SCM) Provides The Customer With The Right Product At The Right Time

Supply Chain Management (SCM) provides the customer with the right product at the right time, priced at the right level in the right quantity and quality”

Critically analyse how the ‘4 fundamentals of SCM’ aid in the creation of ‘competitive advantage’ for an organisation and how this in turn then increases the ‘value add’ for the consumer?

Explain rationale by way of practical industry examples and supplement their analysis by referencing relevant literature.

Illegal trade in counterfeits is a substantial and growing threat to the competitiveness of legitimate industry. It deprives companies of revenue and profit, undermines brand value, puts consumers at risk and results in lost jobs. In the auto industry alone, the Federal Trade Commission estimates that an additional 250,000 American workers would be needed if counterfeit parts were eliminated. The auto parts industry has turned up such a variety of fake parts being sold in the United States that entire cars could be built. With counterfeit auto parts, the concern goes beyond monetary losses. Fake parts are cheaper for a reason: counterfeiters cut corners and use poor quality materials, and the consumer pays the price in the end. Elsewhere, the pharmaceutical industry and the food industry also face real and present dangers, beyond direct financial losses, from counterfeiting and diversion.

As a key leader in your company’s supply and demand chain management processes, how are you and your company seeking to improve product and supply chain security? Effective supply and demand chain management is often measured by having the “right product at the right place at the right time.” In conventional terms, clear market and demand knowledge drives commercial success in meeting customers’ needs. Either the right product is at the right place at the right time, or a potential sale or manufacturing window is lost. Companies continue to invest in their integrated supply chain functions to improve sales and operations planning (S&OP) capabilities to create strategic advantages while improving cash flows and working capital. However, from a secure supply chain perspective, what is your company doing to ensure that the “right product” is actually delivered to the right place at the right time?

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