How Can You Gain an Advantage with a Competitive Supply Chain?
Summary
Focusing too much on your own company leads to sub-optimization, which can hurt your teammates on your supply chain team and reduce your competitive advantages in the market. In our discussion of management leadership we showed how inventory turns is a composite measure of your raw materials + work in process + finished goods. High raw material stocks are needed to compensate for long lead times or large minimum orders which constitute our supplier inefficiencies. High stocks of finished goods are used to compensate for infrequent orders, slow moving products or chaotic demand, which represents our sales and marketing inefficiencies. In order to maximize your competitive advantage you need to strengthen your supply chain and lead it as an integrated team.
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