Why We Love Procurement & Supply Chain Management (And You Should, Too!) Part 2

January 16th, 2015

Reason 2: It is the new basis of competition

 

Today’s post is written by Heather Powell, CFT Director & Project Manager at SafeSourcing Inc.

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Sourced from: http://buyer.sellerinsights.com/2012/12/12/8-reasons-to-love-procurement/

Reason 2: It is the new basis of competition

The most exciting companies of the past decade – Apple, Dell and Amazon to name just a few – have all had supply chain management at their core. Indeed, they could not have succeeded without it.

Supply management is the new and perhaps ultimate source of competitive advantage for modern business. It is at the core of new business models – from manufacturing in low cost economies to selling across the web.

Today’s global industry leaders, such as Apple or Dell, make up in market capitalization what they lack in bricks and mortar. They own few factories, warehouses, or trucks. These have been replaced by a global supply chain that can produce at low cost and yet meet stringent quality standards, respond swiftly to peaks or troughs in demand and take new products from concept to reality in rapid time.

Production engineering is no longer the source of competitive advantage. It does not matter who owns the factory or where it is located. It is time to move over Demming – Total Quality Management has been superseded by Supply Chain Management.

It is no longer about production engineering, but re-engineering of the very shape and structure of the organization. The value chain of modern business is the supply chain and that makes supply chain management the place to be.

Stay tuned tomorrow for Part 3.

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

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