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Why and How Had the Competitive Market Place for SAB Changed in the Last Five to Seven Years

Why and How Had the Competitive Market Place for SAB Changed in the Last Five to Seven Years

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Published by sitinurzahrah
Central Transport, Inc
Central Transport, Inc

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Categories:Types, School Work
Published by: sitinurzahrah on Apr 11, 2013
Copyright:Attribution Non-commercial

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06/19/2014

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1.Why and how had the competitive market place for SAB changed in thelast five to seven years?Supply chain management now part of the business vocabulary. Theimpact of global marketplace drastically changed the landscape of business. Change was rapid and continuous in the 1990s. Doing businessin the comfort zone was no longer synonymous with success. The competitive market place for SAB had changed in the last five toseven years because:
(1)Globalization
Globalization is the most prevalent factor in the changing businessworld. This environment manifests itself in opportunities and threatsboth economically and politically. However there are three importantissues or challenges for supply chains of the global economy whichare (i) more volatility of supply and demand, (ii) shorter product lifecycles, and iii) the blurring of traditional organizational boundaries.
Global economic crisis The latest economic crisis happened because of dropped in USdollar value. It is because most of the foreign countries affected bythis situation.
Global economic liberalization
Global network sourcing, manufacturing, marketing and distributionRecently, outsourcing has become the trend for many companies toadopt in order to cut cost of operations, such as Crocs and Toyotathat happen to locate their factories in China due to lower labourcosts. Whereby India is well-known with their customer service andcall center setup.
 
(2)Technology and information
 Technology has made a major impact as a facilitator of change ascompanies have transformed their processes.
Allow connection Technology has allowed individuals and smaller organizations toconnect to the world’s knowledge pools to create variousinformation systems in managing supply chain. For example, theintegrated make to stock system, build to order system, andchannel assembly.
Information AgeInformation Age provides new and unrestricted access to the placeaspect of business. The access to latest knowledge and informationopen the opportunity for new comers to compete with multinationalcompanies. The fundamental of Information Age is whoever holdsthe power of latest information will grow and succeed faster thanothers.
Warehouse technologyWarehouse technology has changed dramatically with computerdevices in use from the office space to the forklifts. For instance,warehouse management system (WMS) act as a key part of supplychain and primarily aims to control the movement and the storageof materials within a warehouse and process the associatedtransaction including shipping, receiving, put away and picking.WMS often utilize automatic identification and data capturetechnology such as, bar codes scanner, mobile computer, wirelessLAN, and RFID (Radio Frequency Identification) to efficiently monitorthe flow of the products.
(3)The Empowered Consumer
Impact on logistics is more direct.
 
Informed consumers have low tolerance for poor quality in productsand services.
Changing demographics commands 24/7 service.
Increased customer service increases the importance of logisticsand supply chains.
(4)Power Shift in the Supply Chain
Large retailers more demanding and commanding.
Focus upon distribution costs and their impact on “everyday lowprices”.
Changing logistics and supply chain strategies resulted from shiftsin the balance of economic power.
(5)Deregulation
Changing economic controls empowered creativity and competition.
Changes in transportation fewer or no economic controls overrates and services.
Change in financial institutions blurred traditional differences andincreased competition.
Change in the communications industry also resulted in morecompetition.
Changes in the utility industry allows more competition. The competitive market place for SAB had changed in the last five to sevenyears by:1.Improve warehouse efficiency.2.Made customer orders quicker and with fewer errors3.Arranged for more products to be shipped which lead to lower ratesand better service

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