Firms Lose Edge as Supply Chains Compete for Customer Value
This article explores how supply chains can become more competitive in today's market. Instead of just individual companies, whole supply chains now have to compete against each other to please customers and get ahead. Researchers put together a theoretical model drawing from different theories to show that when different parts of a supply chain work well together and give good service, the whole supply chain becomes more competitive. This, in turn, can give the supply chain an edge over others in the market. The model suggests that when everyone in the supply chain – from suppliers to the main company to distribution centers – provides great service to each other, the entire supply chain gets stronger and stands out from the crowd.