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Supply Chain Companies Focus On Speed To Essay

Supply Chain Companies focus on speed to market for a couple of reasons. There are first-mover advantages, and in some markets like smartphones there are a lot of consumers who are early adopters, so the market is strong for products that come to the market quickly (Smith, 1999). Companies can position themselves as innovators if they are consistently first to market with new ideas. Speed to market is also reflected in firms that are not the innovators, but the followers. Following the leaders quickly is a method that can allow a company to remain competitive but with a lower level of innovation expense; following the leader slowly can leave a company with a noticeably inferior product.

Yet, there are disadvantages to the idea of speed to market. First, it is sometimes a more complex strategy. The company will need to develop an agile supply chain, and have its systems dialed in to a much higher level than if it took more time in product development. There is often a need for a company's suppliers to take the lead on new innovations, and within that framework there is a much higher cost. Further, getting to market quicker does not mean that the product is inherently better. If anything, it increases the risk that there are faults in the product that will need to be resolved. Microsoft's incessantly buggy Windows versions in the 1990s and early 2000s were...

First mover advantage works when the product that is delivered is of superior quality. The brand image is improved, not just because the company is an innovator, but because the company has delivered an innovative product with few flaws. When there are flaws, however, this undermines the business. The early adopters will complain about the product, and may even reject it. This is sort of what happened to Windows Vista, which had a bad reputation among early adopters, before most consumers had even worked with it. This was very much to the detriment of Microsoft, because it discouraged enterprise users -- the largest customer base -- from using it (Kingsley, 2008).
While some studies have shown that speed to market has a positive correlation with profitability, there are other studies that contest such a conclusion. Langerak and Hultnik (2006) note that there are many instances where this is not the case, where the risks associated with bringing a product to market before it is ready become manifested, to the detriment of sales of that product, and potentially to the reputation of the entire brand.

The end consumer can also be harmed by products that have been rushed to market. There are some instances…

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References

Kingsely, A. (2008). The day Microsoft killed the Vista name -- January 31, 2006. ZD Net. Retrieved March 22, 2015 from http://www.zdnet.com/article/the-day-microsoft-killed-the-vista-name-january-31-2006/

Robinson, A. (2013). 6 benefits of logistics automation in a transportation management system. Cerasis. Retrieved March 22, 2015 from http://cerasis.com/2013/10/25/logistics-automation/

Bowersox, D. (1990). The strategic benefits of logistics alliances. Harvard Business Review. Retrieved March 22, 2015 from http://gkwl.nbu.edu.cn/4pl/gwxsrw/12.pdf

Harps, L. (2005). Cool stuff, blazing speed. Inbound Logistics. Retrieved March 22, 2015 from http://www.inboundlogistics.com/cms/article/cool-stuff-blazing-speed/
Schechter, D. (2014). 3 ways outsourced shipping and logistics can speed entry to global markets. Entrepreneur. Retrieved March 22, 2015 from http://www.entrepreneur.com/article/237758
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