Why Evaluate the Supply Chain?
Why is it important to analyze your supply chain capabilities as well as those of your competitors? The most basic reason is to assure that—at the very least—you are managing your supply chain as well as or better than the competition is managing theirs. Beyond that, benchmarking can help you identify ways to improve your supply chain and heighten barriers to competitive inroads. Some key metrics to investigate include order-to-delivery cycle times, vendor response time to rush orders, and accuracy of delivery information. The supply chain analyses can be done independently or they may be conducted as part of a formal continuous improvement program, as required to comply with ISO 9002. The competitive evaluation process should include looking at the five main types of competitive threats identified by Michael Porter in his book Competitive Strategy. These threats include new entrants, existing rivals, buyers negotiating for a lower price, suppliers negotiating for a higher price, and s
