Supply Chain Management

There has been a lot of buzz about the changes in the way business is conducted, new techniques, new processes, new methods, new focus and outlook but advancements in technology has changed the whole paradigm of business methods. Past three decades have seen more changes in business operation than the rest of millennium. It was considered to be a sellers market until globalization and Michael Porters work on competitive came. Then the markets transformed from sellers markets to buyers market. The competition has shot up astronomically. Most of the products have entered into a commodity market. There are competitors, substitutes available for the similar products giving the customers a huge range to choose from. In this competition, the companies tried to gain competitive advantage, by lowering costs or by providing better quality. Competitive advantage until recently was considered only into economical aspect. Better sales, better profits, market share etc. and the methods and techniques used were also direct or improving efficiency and attaining economies of scale. This notion has been challenged robustly in the recent times. Companies are looking for resources and capabilities outside the companys four walls. Which bring us to the companys supply chain. Now there has been tremendous research and advancements in this field of supply chain and implementation of information technology has changed the rules of the game completely. Companies and organizations are no longer competing individually. The competition has changed its playfield to supply chains. The supply chains have become more important than ever. The companies have understood, better managing supply chains can lead to economies of scale and if played properly and carefully, effective and efficient supply chains can be source of competitive advantage.With markets changing continuously, supply chains have to adapt and change. Traditional supply chain management cannot be enough in todays competitive world. In the market as competitive as today companies need to have an efficient supply chain. Companies have exploited supplier relationships, supply chain integration, information technology and recently sustainable and green supply chains to attain competitive advantage. But as we mentioned earlier markets are changing and have been dynamic, similarly a competitive advantage attained is not an assurance that it would carry forward into future as well. The understanding of competitive advantage has also expanded. Perception of an organization amongst the customers and in market can also be a competitive advantage. Companies have indulged in attainment of sustainable competitive advantage. Resources and capabilities are being converted into dynamic resources and dynamic capabilities. Information has played a major role in market transformation. Companies try to gather as much information they can analyze and utilize it to make rational and better decisions. Companies have knowledge management as an important factor that can be a direct source of competitive advantage and this allows innovation.