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Competitive advantage and the ‘Three Cs’

Competitive advantage and the ‘Three Cs’. Customers. Needs seeking benefits at acceptable prices. Value. Value. Cost differentials. Assets and utilisation. Assets and utilisation. Company. Competitor. Source: Ohmae , K., The Mind of the Strategist, Penguin Books, 1983.

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Competitive advantage and the ‘Three Cs’

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  1. Competitive advantage and the ‘Three Cs’ Customers Needs seeking benefits at acceptable prices Value Value Costdifferentials Assets and utilisation Assets and utilisation Company Competitor Source: Ohmae, K., The Mind of the Strategist, Penguin Books, 1983

  2. The experience curve Real costs per unit Cumulative Volume

  3. High Relative Customer Value Low High Low Relative Delivered Cost Supply chain excellence

  4. Gaining competitive advantage through logistics The goal: superior customer value at less cost • Value Advantage • Logistics Leverage Opportunities: • Tailored service • Reliability • Responsiveness, etc • Cost Advantage • Logistics Leverage Opportunities: • Capacity utilisation • Asset turn • Schedule integration

  5. Investing in process excellence yields greater benefits 100 Product excellence (%) Revised emphasis Current emphasis • 100 Process excellence (%)

  6. The four pillars of supply chain excellence Supply Chain Excellence Responsiveness Reliability Resilience Relationships

  7. Managing the ‘4Rs’ Responsiveness : Time-based competition is now the norm. The focus is on agility. Reliability : Unreliable processes create uncertainty and variability. Equally, lack of visibility adds to uncertainty. Resilience : Today’s turbulent and volatile markets require supply chains that are capable of dealing with the unexpected and the unplanned. Relationships : As supply chains become more complex and as out-sourcing increases dependency on suppliers, the need for relationship management increases.

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