| The peak era of mass manufacturing where all the | | | | products and services starts to emerge. The trend |
| managing aspect in delivering a product being done in | | | | has become a critical factor of winning new |
| one roof is no longer a trend. Companies who tend | | | | customers and retaining a company as market leader. |
| to manage internal process only and squeeze the | | | | This emerging trend has created the need for a |
| suppliers for cost reduction will lose their competitive | | | | more effective management approach of quick |
| edge. As customers demands rapidly change and | | | | delivery of products or services to the end users. |
| products life cycle are shortening, companies now not | | | | The supply chain management approach offers the |
| only need to manage their internal process | | | | ability of greater flexibility in creating new products at |
| effectively, they now must also manage their | | | | a faster level. Supply Chain Management creates the |
| external suppliers more effectively. Managing the | | | | ability of the company to respond much more quickly |
| supply chain as a whole will create the ability of the | | | | to the customers' fast demand patterns. As Martin in |
| company to identify weaknesses and strength in the | | | | his book 'Logistics and Supply Chain Management: |
| entire supply chain. To compete, it is not enough by | | | | Strategies for Reducing Cost and Improving Service' |
| just identifying the company's strength but also | | | | states, 'greater market share and customer loyalty |
| identifying what is your supply chain partner's | | | | can be gained by quick and reliable response to |
| strength as well. By managing the supply chain and | | | | customers' changing needs'. The life cycle of product |
| eliminating waste processes, the cost reduction will | | | | nowadays demands a faster response from the |
| be significant and at the same time value addition to | | | | industry. The rapid change demand pattern requires |
| the product. | | | | extensive information sharing among the supply chain |
| Dell for example, has use its supply chain | | | | partners. Companies that are not fast enough to |
| management as a unique advantage over already | | | | cope with the fast changing demand of end |
| established PC makers by eliminating process waste | | | | customer will lose a certain amount of market share. |
| in their overall supply chain of producing Personal | | | | As an example, in 1994, Compaq, a personal |
| Computers. Dell identified that by eliminating retailers | | | | computer company has acknowledged their inability |
| from their supply chain, the company can response | | | | to respond faster to a sudden upsurge demands |
| much faster to customer's demand compared to | | | | have caused the company a sale lost of $1 billion |
| having a retailer to market their PC. Dell has able to | | | | dollars.This example shows how companies now must |
| reduce waste by identifying the weaknesses of the | | | | adapt fast to changing pattern of consumer demands |
| entire process and eliminate it as soon as possible. | | | | with effective management and monitoring. |
| In the end of 1990s, the trend of speedy delivery of | | | | |