Competitive Advantage of Supply Chain and Logistics

The main objective of effective logistics and supply chain management is providing competitive advantages. The foundations for success in the marketplace are numerous, but a simple model is based around the triangular linkage of the company, its customers and its competitors – three-way relationship.

The first source of competitive advantage is found in the organization's ability to differentiate itself, in the eyes of customers, competition and secondly by operating at a lower cost and hence at a greater profit. Finding a sustainable competitive advantage has become the concern of every manager who is wary of market realities. You can hop over to this site to know more about supply chain and logistic services.

It is no longer acceptable to assume that a good product will sell themselves, nor is it advisable to imagine that today's success will continue into tomorrow. At its most elemental, commercial success derives from either a cost advantage or a value advantage or, ideally, both.

This means that successful companies either have a cost advantage or they have a value advantage or a combination of the two. Cost advantage gives a lower cost profile and the value advantage gives the product or offering a differential "plus" over competitive offerings.