| A company that intends to implement Supply Chain | | | | Chain Management: Strategies for Reducing Cost and |
| Management does not necessarily increase their | | | | Improving Service", the benchmarking can be set |
| competitive edge. Often times, companies fail to | | | | through these priorities as stated below:-i) Which |
| identify the key business issues that are closely | | | | processes and entities in the supply chain are of |
| related to the effective implementation of Supply | | | | strategic importance?ii) Which processes and entities |
| Chain Management. The key business issue often | | | | in the supply chain have a high relative impact on the |
| related to the effective implementation of SCM in | | | | business?iii) Where there is a choice between 'make' |
| the business processes are market positioning. | | | | or 'buy'.iv) Where there is internal readiness to |
| A company decision in market positioning can be | | | | change. |
| consider as one of the most important key business | | | | As an example, in the case of Zara, Spain's most |
| issues to be dealt with. Market positioning relates to | | | | successful apparel companies. Zara's market |
| the core competencies that they have and how they | | | | positioning is in direct competition with fashion giant |
| utilize it to get ahead from other competitors. In | | | | such as Benetton, The Gap and The Limited. But |
| order to compete, non core competencies are | | | | since, the fashion industry is a time-based |
| outsourced in order to give more focus on their core | | | | competition; Zara therefore has utilized SCM as a tool |
| competencies. By stock taking company's internal | | | | for competitive advantage by having a much quicker |
| strengths and weaknesses, a company can | | | | response systems in the industry. Zara operates |
| benchmark itself with other similar competitors. | | | | effectively through two successful objectives, and |
| Through benchmarking, a company can restrategize | | | | those are, working without stocks and respond |
| its internal operation to favour the niche expertise | | | | faster to market demands. Zara not only managed |
| that they have. Through restrategizing also, the | | | | to create competitive edge by positioning itself as |
| company can decides which type of suppliers that | | | | the fastest apparel companies to deliver its goods to |
| they want in their supply chain so that they can | | | | the customers but also as a leader in the fashion |
| position themselves in the correct market segment. | | | | industry. |
| According to Martin in his book "Logistics and Supply | | | | |