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Submitted by gaurav3636 on March 31, 2008
Category: Technology
Words: 18887 | Pages: 76
Views: 202
Popularity Rank: 38,475
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Introduction
The competitive drivers of the 21st century are time and service (responsiveness and flexibility). The notions of stabilizing flow and reducing variations are no longer competitive practices.
More to point, three forces separately and in combination are driving today’s companies deeper and deeper into a territory that most of the executive and managers find frighteningly unfamiliar. These forces are the 3 C’s, customer, competition and change.
Customers: - Seller no longer has upper hand whereas customers do. A customer now tells the supplier what they want, when they want it, how they want it and what they will pay.
Competition: - It used to be simple the company that could get the market with an acceptable product and service, at the best price could get the sale. Now, not only does the competition exist but also, it’s of many different types. If the company cannot stand shoulder to shoulder with the worlds best in the category, it soon has no place at all.
Change: - Fore most change has become both pervasive and persistent. It is treated as normal. E.g.-life insurance companies offer only two products, but today their supply is constantly changing and creation of new product is constantly increasing.
Instant, reliable, and aggressive order quotation and order shipment is becoming standard practice as market gains global visibility. This is possible only by accurate & quick flow of information, material, and cash flow between the customers and suppliers. Today market forecasts are less applicable because the market changes so fast that forecast made are quickly obsolete. So we need a mechanism that allows the market to respond instantly. This leaves more accurate and dynamic planning in the management of material, information and cash flow as the only competitive option, Thus the solution is get your logistics right.
Objectives...
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