The changing competitive environment

Much of this book will be devoted to addressing these challenges in detail but it is useful at this stage to highlight what are perhaps the most pressing currently. These are  

We are now entering the era of supply chain competition . The fundamental difference from the previous model of competition is that an organisation can no 

For example, one capability that is now regarded by many companies as fundamental to success In the marketplace is supply chain agility. As product life cycles shorten, as customers adopt just-in-time practices and as sellers markets become buyers markets then the ability of the organisation to respond rapidly and flexibly to demand can provide a powerful competitive edge. This is a theme to which we will return in Chapter 5. 

It is not only in consumer markets that the importance of logistics process excellence is apparent. In business-to-business and industrial markets it seems that product or technical features are of less importance in winning orders than issues such as delivery lead times and flexibility. This is not to suggest that product or technical features are unimportant - rather it is that they are taken as a given by the customer. Quite simply, in today s marketplace the order-winning criteria are more likely to be service-based than product-based. 

At the same time as the power in the distribution channel continues to shift from supplier to buyer, there is also a trend for customers to reduce their supplier base. In other words they want to do business with fewer suppliers and often on a longer-term basis. The successful companies In the coming years will be those that recognise these trends and seek to establish strategies based upon establishing closer relationships with key accounts. Such strategies will focus upon seeking innovative ways to create more value for these customers. 

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SafeFM aims to provide guidance on the cost effective requirements capture, development and assessment of high integrity systems which will be responsive to the changing competitive environment in which we operate. 

The job for the resource manager is formidable it is not certain that even the best processes will become commercial in a competitive environment. Many external factors can cause the commercial environment to change with great effect. A few examples are the availability of cheap Mexican and Canadian gas, an Iranian shutdown of oil production, a larger OPEC price increase than anticipated, very high interest rates. 

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