Supply Chain Management Competition

Supply Chain Management Competition

When it comes to supply chain management, competitiveness refers to the degree to which demand and supply are able to be matched within a competitive environment. When there is a decrease in demand or an excess supply in the market place, companies will need to offer dropping prices or improving quality to their consumers in order to earn their orders. This is because customers are more price sensitive during these market conditions.

Also Read: What is Supply Chain Management?

Supply Chain Management Competition Overview

A supply chain is a collection of networks that allow for the transmission of commodities from the wholesalers to the retailers in a market system. These wholesalers operate between the suppliers and the retailers. Actually, the wholesale prices are set by the suppliers and the retailers themselves, not the wholesalers. This is because it has an impact on the price that the sellers are willing to pay the dealers.

However, according to the most recent models of competition in the supply chain, retailers and suppliers do not have a significant amount of influence over the prices at the wholesale level. This means that the buyer’s power doesn’t change based on things like the amount of output or units delivered or the number of merchants.

Also View: Advantages and Disadvantages Of Monopoly

Advantages of Supply Chain Management Competition

The following are the advantages of supply chain management competition:

Reduced market risks: By encouraging innovation, developing new business models, enhancing consumer satisfaction, and strengthening loyalty, competition can help decrease market risks.

Supply chain optimisation: The competition will enhance supply chain management by identifying bottlenecks in the manufacturing process that cause delivery delays and cost increases.

Increased company competitiveness: Competition will assist firms in increasing their competitiveness by fostering new ideas and innovations through collaboration with competitors.

Disadvantages of Supply Chain Management Competition

The disadvantages of supply chain management competition are as follows:

Competition leads to a decrease in the quality of goods and services.

There is no guarantee that your products will rank in the markets as there are other factors to consider as well.

May require trained and qualified manpower for effective execution within the company.

Supply chain management competition is a complicated task that involves numerous complexities within the company.

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