Strategic Supply Chain Management - Supply Chain Online

1C H A P T E R
Core Discipline 1:
View Your Supply Chain
as a Strategic Asset
If you’re like many companies, you only think about changing your supply
chain when something’s broken—inventory levels are too high, customers
are complaining about poor service, or a supplier is late with a
critical shipment. Or maybe a benchmarking analysis shows that your supply
chain performance is subpar relative to others in your industry.
If you only think about changing your supply chain when there’s a
problem, chances are that you don’t see it as a valuable asset that can give
your company a competitive advantage. And if this is the case, you risk
being blindsided by companies that use their supply chain as a strategic
weapon. Companies such as Dell, Amazon, Shell Chemical, and Airbus
are rewriting the rules of competition in their industries—and forcing the
laggards to play catch-up.
Market leaders such as Wal-Mart and Dell understand that the supply
chain can be a strategic differentiator. They constantly search for new
ways to add value and push the boundaries of performance. And they keep
refining their supply chains so they stay one step ahead of the competition.
They know that today’s competitive edge is tomorrow’s price of entry.
Michael Dell is widely viewed as a pioneer in the personal computer
(PC) business. He transformed Dell from struggling PC maker to market
leader by introducing supply chain innovations such as direct-to-consumer
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