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Order Winners And Order Qualifiers

Order Winners And Order Qualifiers

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Published by ClassOf1.com
The operations and supply chain strategy is a functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy. Executing successful operations and supply chain strategies means choosing and implementing the right mix of structural and infrastructural elements. What constitutes the best mix of these structural and infrastructural elements is a sub¬ject of ongoing debate among business and academic experts alike.
The operations and supply chain strategy is a functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy. Executing successful operations and supply chain strategies means choosing and implementing the right mix of structural and infrastructural elements. What constitutes the best mix of these structural and infrastructural elements is a sub¬ject of ongoing debate among business and academic experts alike.

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Published by: ClassOf1.com on Apr 17, 2013
Copyright:Attribution Non-commercial

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OperationManagement 
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Sub: Operation Management Topic:
 
Supply chain
*
Order Winners And Order Qualifiers
 
The
operations and supply chain strategy
is a functional strategy that indicates how structural andinfrastructural elements within the operations and supply chain areas will be acquired and developedto support the overall business strategy. Executing successful operations and supply chain strategiesmeans choosing and implementing the right mix of structural and infrastructural elements. Whatconstitutes the best mix of these structural and infrastructural elements is a subject of ongoingdebate among business and academic experts alike. Nevertheless, we can identify three primaryobjectives of an operations and supply chain strategy:To help management choose the right mix of structural and infrastructural elements, basedon a dear understanding of the performance dimensions valued by customers and the trade-offs involved;
To ensure that the firm’s structural and infrastructural choices are strategically aligned withthe firm’s business strategy; and
 To support the
development of core competencies in the firm’s
operations and supplychains
.
Operations and supply chains
help firms provide products or services that someone values. But howshould we define value? To begin, most customers evaluate products and services based on multipleperformance dimensions such as performance quality, delivery speed, after-sales support, and cost.The organization that provides the best mix of these dimensions will be seen as providing the highestvalue. Some managers use the concepts of 
order winners and order qualifiers
to highlight the rel-ative importance of different performance dimensions.
Order winners
are performance dimensionsthat differentiate
company’s
products and services from those of its competitors. Firms win the
customer’s business by providing superior levels of performance on ord
er winners.
Order qualifiers
 
 
 
Sub: Operation Management Topic:
 
Supply chain
*
are performance dimension on which customers expect a minimum level of performance. Superiorperformance on an order qualifier will not, by itself, give a company a competitive advantage.The industrial chemical market offers an example to illustrate the difference between order winnersand order qualifiers. Buyers of industrial chemicals expect a certain level of purity (i.e., conformancequality) before they will even consider purchasing a chemical from a particular source. Because allpotential sources must meet this minimum requirement, purity is incredibly important. Once thepurity requirement has been satisfied, however, other performance dimensions
such as cost,delivery speed, and flexibility
—will be used to determine the best source. From the supplier’s
perspective, product quality is the order qualifier; cost, delivery speed, and flexibility are orderwinners. Understanding what are the relevant order qualifiers and order winners helps operationsand
supply chain managers
to formulate strategy in three ways. First, it helps identify potentialproblem areas, as well as strengths. Second, it clarifies the issues surrounding decisions on trade-offs.Finally, it helps managers to prioritize their efforts.

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