The Importance of Supply Chain Management in Competitive Business: A Case Study on Woolworths
Manajemen Usahawan Indonesia, No. 1, pp. 32-39, 2010
26 Pages Posted: 14 Jan 2011 Last revised: 20 Nov 2011
Date Written: January 1, 2010
This paper investigates how supply chain management benefits corporate to compete in business world. The evolution of essential concept of supply chain management since it was firstly introduced by Porter in 1985 until its current development is discussed. Supply chain management can lead corporate to achieve competitive advantage by proper manage linkages between activities in their value chain. The impacts of technology on supply chain management, including the Internet, bar code technology and radio frequency identification (RFID), is also presented.
The role of supply chain management in gaining competitive advantage is exemplified by a case study on Woolworths. Woolworths has been chosen as it succeeded to achieve remarkable financial performance through redesigning its supply chain management in strategy called Project Refresh. Improved managing its supply chain enables Woolworths to book huge amount of cost saving. This achievement has lead Woolworth to gain the only one of Australian firms ranked in the AMR Research’s Supply Chain Top 25 in 2005 and 2006.
Keywords: Supply Chain Management, Woolworths, Project Refresh
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