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Value chain design is currently emerging as
the key source of competitive advantage at both
the firm and industry level. Diagnostic takes
into account surrounding costs and factors when
considering individual businesses and their
sustainability and aims to maximise the community’s
‘share of the pie’.
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SCM
solutions tend to be categorised as either process
oriented or transaction oriented. The process
oriented solutions view the whole design of the
supply chain as a highly flexible system and that
superior supply chain management is best focused
on process planning to take advantage of new technologies
[an important one of which is radio frequency
identification (RFID)], new work practices, new
markets and changing client preferences.
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In
contrast, the transaction solution tends to focus
more on reducing costs or increasing value from
an existing supply chain by collecting, analysing
and sharing information across all supply chain
activities with the aim of improving coordination
through what is termed Enterprise Resource Planning
(ERP). Client Relationship Management (CRM), gives
more attention to intangibles such as keeping
clients happy, all the time. In reality these
competing categories are not so different. |