SCM — Defensive and Offensive Weapon

The consequence is loss of a customer segment. Very often this segment is the most profitable. This is because the focused competitor does his homework not only on the supply chain features needed but also on the economics of delivering those features. This process may occur over long periods of time and be seen as erosion of market share. Often, it can be dramatic — executed by an upstart company or start-up outside the industry. 

The threat we ve discussed is also an opportunity. Supply chain management, SCM, enables one s own enterprise to pick off entrenched competitors. So SCM is both a defensive and offensive weapon. We ll describe ways to use SCM tools offensively in future chapters. The next chapter begins this journey by reviewing some of the thinking that has led to where we are today. To do this we ask how well our current supply chain investment strategies contribute to competitiveness. 

Francis J., Success now linked to technology. Logistics, p. 32, June 1999. 

The threat we have discussed is also an opportunity. SCM enables one s own enterprise to pick off entrenched competitors and develop defenses against competitors. We describe ways to use SCM tools offensively in future chapters. 

Flammer, Michael, Deep change how operational innovation can transform your company, Harvard Business Review, April 2004, pp. 84-93-Kahn, Gabriel, Tiger s new threads, Watt Street Journal, March 26, 2004, p, Bl. 

McWilliams, Gary, Lean machine how Dell fine-tunes its PC pricing to gain edge in a slow market, The Watt Street Journal, June 8, 2001, p. Al. 

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