Thursday, 22 January 2015

How do Operations and Supply Strategies work in Competitive Markets? Part Two

Firms need to look at creating operations and supply strategies that help them to compete in the competitive markets.

Reliable Deliveries - Firms need to be able to deliver on time and when promised, if not before. Suppliers must be able to provide materials and parts on time for production. Reliable deliveries are essential.

Demand – Demand fluctuations occur in many markets and firms have to be able to respond to both increases and decreases in demand if they want to compete. When demand increases the costs can be reduced thanks to economies of scale. When the firm needs to scale back decisions must be made on how to cope and survive, such as reducing assets or cutting back employees.

Flexibility – The firm can increase their flexibility by offering multiple products to the cust omers. The firm will need to account for the time that products take to design and produce.

Support – the support provided via special services can increase the competitiveness of the firm through different activities including:

·  Technical support
·  Launch date targets
·  After sales support from suppliers
·  Options in sizes, colours as well as customisation

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