How Globalization And Its Supply Chain Management System Has Led To A Competitive Advantage

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MERCEDES-BENZ: How globalization and its supply chain management system has led to a competitive advantage

MERCEDES-BENZ: How globalization and its supply chain management system has led to a competitive advantage


Supply chain is defined as a set of three or more companies directly linked to one or several up and down movement of goods, services, finance and information from the source to the client. It consists of all stages involved, directly or indirectly, in fulfilling customer demand. It includes not only manufacturers and suppliers, as well as transporters, warehouses, retailers and customers themselves. Within the organization, supply chain includes all functions involved in fulfilling customer demand. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance and customer service.


Competitiveness and Supply-chain Strategies

Competitive strategy of Mercedes-Benz defines a set of customer requirements that it seeks to satisfy through its products and services. Supply chain strategy determines the nature of the procurement of raw materials, transporting materials to and from the company, product or production operations in the provision and distribution of product to the customer, as well as any follow-up service. The ultimate goal of SCM is to achieve "strategic fit" between the competitive strategy of Mercedes-Benz and supply chain strategy. This strategic approach can be achieved by understanding the customer demand, which helps companies determine the costs and maintenance requirements and an understanding of the supply chain that allows the company to develop and manage their supply chain in accordance with customer requirements. If any discrepancy exists between what the supply chain is capable of doing in relation to customer requirements, the company can either modify the structure of supply chain design or modify their strategy.

New technologies and ever-increasing intensity of competition is forcing organizations to reconsider how they do business, meet new customer-oriented call, the company reinvest their supply chains to achieve success. Consider the number of companies in the supply chain, everyone who orders from close up cock. Under these conditions, incoming orders from down member serve as a valuable informational input to upstream of the latter with the globalization of the world economy, diversity and environmental factors influencing the global strategy and approach to supply chain drivers affecting companies to become more global in nature. Different approaches to globalization require different degrees of integration of the supply chain, and various supply chain strategies and structures. Regardless of the approach to globalization and the global supply chain management are adopted, companies are faced with problems understanding and management of increased complexity and risks associated with the global environment.

Forces of Globalization competitiveness

The last two decades we have witnessed the evolution of global production environment. Most manufacturers have a global presence through exports, strategic alliances, joint ventures or as part of a committed strategy to sell and produce in foreign markets. Four driving forces of globalization. (Adapted from global carriers and logistics Philip-Puire Dernier, Recordo Ernst, Michel Fender, Panos ...
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