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By Shoshanah Cohen

ISBN-10: 0071445862

ISBN-13: 9780071445863

Agile, strategic provide chain administration is a key aggressive necessity in state-of-the-art no-room-for-error company area. And few businesses have obtained extra knowledge--and confirmed higher results--than the crew at worldwide administration consultancy Pittiglio, Rabin, Todd, and McGrath (PRTM). within the step forward reference Strategic offer Chain administration, of PRTM's top specialists during this perform clarify every thing that company decision-makers want to know to create worth and aggressive virtue from their offer chains.

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These companies customize their products and services to build customer loyalty and lock in repeat sales. To excel at service, all of a company’s customer-touching processes and information systems such as order capture, order fulfillment, and invoicing must be fast, consistent, and troublefree. The ability to integrate internal processes and systems with those of key customers is a core skill. 10 Why does better service lead to such striking financial gains? On a basic level, companies with superior customer service processes avoid the costs related to expediting and the short-term churn that other, less adept companies face.

The company’s on-time delivery performance was excellent. There was only one problem—delivery performance was no longer the key to profitable growth. Increased competition meant that customers were demanding, and getting, lower prices. What’s more, a slowdown in several of the company’s primary markets was cutting into revenues and sharply reducing return on assets. The company’s president recognized the need to move to a much lower breakeven point, but supply chain operations were focusing on yesterday’s priority—customer delivery excellence.

Make to order is the preferred strategy for customized products or products with infrequent demand. Companies following this strategy produce a shippable product only with a customer order in hand. This keeps inventory levels low while allowing for a wide range of product options. Configure to order is a hybrid strategy in which a product is partially completed to a generic level and then finished when an order is received. This is the preferred strategy when there are many variations of the end product and you want to achieve low finished-goods inventory and shorter customer lead times than make to order can deliver.

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Strategic Supply Chain Management by Shoshanah Cohen


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