Strategic Initiatives for Implementing Competitive Advantages

CHAPTER 3

Strategic Initiatives for Implementing Competitive Advantages

Supply Chain Management (SCM)

Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The four basic components of supply chain management are : 

• Supply Chain Strategy - The strategy for managing all the resources required to meet customer     demand for all products and services
• Supply Chain Partners - The partners chosen to deliver finished products,  raw materials, and services including pricing, delivery, and payment processes along with partner relationship monitoring metrics.
• Supply Chain Operation - The schedule for production activities including testing packaging, and preparation for delivery. Measurements for this component include productivity and quality.
• Supply Chain Logistics - The product delivery processes and elements including orders, warehouses, carriers and invoicing. 

Supply Chain for a Product Purchased from Walmart

Effective and Efficient Supply Chain Management's Effect on Porter's Five Forces

Customer Relationship Management (CRM)

Involves managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability. 

CRM allows an organization to gain insight into customer's shopping and buying behaviors in order to develop and implement enterprise-wide strategies.    

CRM overview

Business Process Reengineering (BPR)

The analysis and redesign of workflow within and between enterprises. The purpose of BPR is to make all business process the best-in-class. 

FINDING OPPORTUNITY USING BPR

• As you can see in the picture, there are different ways to travel the same road.
• A company could improve the way that it travels the road by moving from foot to horse and then from horse to car.
• True BPR would look at taking a different path.
• Company can use an airplane to get to its final destination despite using the road.
• Companies often follow the same indirect path for doing business, not realizing there might be a different, faster and more direct way of doing business.

Seven Principles of Business Process Reengineering

Enterprise Resource Planning (ERP)

Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise-wide information on all business operations