| Nowadays, managers emphasize that functional | | | | change rapidly and continue to escalate (Cavinato, |
| capabilities - new-product development, | | | | 1992, p.285-301). These changes will require a level of |
| manufacturing, technology, marketing - are enablers | | | | responsiveness never before encountered in the |
| for success, but are no longer sources of | | | | business world. The future success will be directly |
| competitive advantages, because they can all be | | | | proportional to the ability to recognize changes |
| replicated in time. However, they believe that truly | | | | occurring in the markets and respond positively to |
| integrated supply chain management does provide a | | | | them. Supply chain integration is crucial in enhancing |
| means to achieve a definitive competitive advantage. | | | | supply chain capability and thus the costs. Many |
| The very nature of supply chain management is | | | | managers apply a simple model to supply chain |
| special. Because of the incredible complexity and scale | | | | operation costs. The lower the cost, the better the |
| involved in managing the flow of goods and | | | | supply chain works. However, even the hard-nosed |
| information between multiple entities in the supply | | | | will admit that it can lead to unsatisfactory results. |
| chain, there exists a broad and ever-changing set of | | | | When focusing only on costs, leads to profitability, |
| priorities that must be managed at any given | | | | market positioning and competitive advantage. |
| moment (Scott, R. Westbrook, 1991, p.23-33). Buy | | | | Custom essay Effective supply chain management |
| essay As supply chain strategies evolve, managers | | | | works backwards from customer needs, helping |
| will encounter new and challenging situations every | | | | companies add financial and business value. If supply |
| day. Some of these challenging situations are internal | | | | chain management emanates from customer needs |
| and involve getting people to adopt the new way of | | | | and integrates all business functions, there must be a |
| thinking. Other challenges relate to government | | | | way to measure its success and make key business |
| regulation and how to comply with a multitude of | | | | decisions (Scott, R. Westbrook, 1991, p.23-33). Supply |
| rules and regulations as goods traverse international | | | | chain integration is related positively to cost |
| borders. Finally, there also exist challenges set forth | | | | efficiency in supply chain and to the agility in the |
| by customers, whose needs and requirements | | | | supply chain. |