Clusters and Supply Chain Management
Managing and Improving Business
Clusters, or geographic concentrations of businesses that are linked together and create competitive success in their industry, exhibit three broad characteristics: Physical proximity, core competencies, and relationships. Clusters are beneficial to each of the businesses involved, and play a significant role in how a company is able to create a niche in their competitive advantage strategy. The communication and involvement between linked companies creates a significant growth in competition, productivity, innovation, and coordination improvement, and trust building (DeWitt, Giunipero, & Melton, 2006).
Supply chain management (SCM) is the management of intertwined businesses and stakeholders that are involved with a product or service (Harland, 1996). The process of supply chain management involves all firms in the integration process and process of building long-term relationships. In the development of involving the members with the integration, as well as strengthening long-term relationships, all those involved with the supply chain may benefit from lower costs, improved customer satisfaction and value, and a strong competitive advantage (DeWitt et al., 2006).
Clusters allow for a way to organize a value chain system in which both a formal hierarchy and an informal relationship are created and benefited from, and therefore the organizations can avoid vertical integration and formal linkages. One of the benefits of clusters is its ability create a more steady customer base in which repeated transactions are made. This is because the companies in...
Supply Chain Management and Concentrated Clusters Distribution Systems Author's Notes Concentrated Clusters and Improvement in Supply Chain Management and firm's overall performance Clusters are geographic concentrations which comprise of interconnected organizations or associations that manufacture products or deliver a service to a particular industry or field. Clusters are mainly a mix of companies belonging to the same industry or located in the same technological facility sharing resources like infrastructure, suppliers and distribution networks. It
When information is shared in confidence, then supply chain members can make better and more informed decisions that will benefit the customer. Strategic alliances happen in a variety of markets with different combinations of suppliers and customers; however, the most typical supplier-consumer alliance involves just a one supplier and one customer. To get a better idea, take a look at the relationship between Wal-Mart and Proctor & Gamble, "which have
Integration and Reflection Supply chain organization This course provided me with the opportunity to gain a more complex understanding about a typical product and the path it takes from the moment when it is created to the moment when it reaches a consumer. A supply chain organization can be much more intricate than some people might be inclined to think. The first important step in a supply chain organization would involve individuals making
Management I wouldn't use a formal process to reconcile global integration and national differentiation. Each situation is unique, and you actually have to think each situation through on its merits, and with its own evidence. Some companies have a very decentralized structure, and thus place more emphasis on decision-making at the national level. Other companies have built their strategy on having a high level of product consistency around the world. But
The Role and Impact of Information Systems in Supply Chain and Logistics Management: A Global PerspectiveAbstractThe rapid pace of technological advancements has brought about a paradigm shift in the supply chain and logistics sector. Information systems are becoming indispensable tools that facilitate global transportation, logistical operations, and supply chain management. This paper aims to explore the role of information systems in streamlining supply chain and logistics management, with a particular
business clusters and supply chains, first supply chain must be properly defined. A supply chain comprises of all parties either indirectly or directly involved, performing actions that satisfy a customer demand. Supply chains include several parts that work together to supply the customer. The manufacturer and suppliers are in one part of the chain with retailers, transporters, warehouses, and customers being in the other end. The supply chain includes
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