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Supply Chain
Companies focus on speed to market for a couple of reasons. There are first-mover advantages, and in some markets like smartphones there are a lot of consumers who are early adopters, so the market is strong for products that come to the market quickly (Smith, 1999). Companies can position themselves as innovators if they are consistently first to market with new ideas. Speed to market is also reflected in firms that are not the innovators, but the followers. Following the leaders quickly is a method that can allow a company to remain competitive but with a lower level of innovation expense; following the leader slowly can leave a company with a noticeably inferior product.
Yet, there are disadvantages to the idea of speed to market. First, it is sometimes a more complex strategy. The company will need to develop an agile supply chain, and have its systems dialed in to a much higher level than if it took more time in product development. There is often a need for a company's suppliers to take the lead on new innovations, and within that framework there is a much higher cost. Further, getting to market quicker does not mean that the product is inherently better. If anything, it increases the risk that there are faults in the product that will need to be resolved. Microsoft's incessantly buggy Windows versions in the 1990s and early 2000s were...
First mover advantage works when the product that is delivered is of superior quality. The brand image is improved, not just because the company is an innovator, but because the company has delivered an innovative product with few flaws. When there are flaws, however, this undermines the business. The early adopters will complain about the product, and may even reject it. This is sort of what happened to Windows Vista, which had a bad reputation among early adopters, before most consumers had even worked with it. This was very much to the detriment of Microsoft, because it discouraged enterprise users -- the largest customer base -- from using it (Kingsley, 2008).
While some studies have shown that speed to market has a positive correlation with profitability, there are other studies that contest such a conclusion. Langerak and Hultnik (2006) note that there are many instances where this is not the case, where the risks associated with bringing a product to market before it is ready become manifested, to the detriment of sales of that product, and potentially to the reputation of the entire brand.
The end consumer can also be harmed by products that have been rushed to market. There are some instances…
References
Kingsely, A. (2008). The day Microsoft killed the Vista name -- January 31, 2006. ZD Net. Retrieved March 22, 2015 from http://www.zdnet.com/article/the-day-microsoft-killed-the-vista-name-january-31-2006/
Robinson, A. (2013). 6 benefits of logistics automation in a transportation management system. Cerasis. Retrieved March 22, 2015 from http://cerasis.com/2013/10/25/logistics-automation/
Bowersox, D. (1990). The strategic benefits of logistics alliances. Harvard Business Review. Retrieved March 22, 2015 from http://gkwl.nbu.edu.cn/4pl/gwxsrw/12.pdf
Harps, L. (2005). Cool stuff, blazing speed. Inbound Logistics. Retrieved March 22, 2015 from http://www.inboundlogistics.com/cms/article/cool-stuff-blazing-speed/
Schechter, D. (2014). 3 ways outsourced shipping and logistics can speed entry to global markets. Entrepreneur. Retrieved March 22, 2015 from http://www.entrepreneur.com/article/237758
This lack of trust within the supply chain has a rippling effect across the flow of goods and services, and should therefore be addressed with a high degree of priority. Trust must be built through a process of regular communication across the supply chain, which includes all parties involved in the flow of goods. Communication can be established by a variety of means. In addition to electronic communication, face-to-face communication
Results from the study by Petersen, Ragatz and Monczka show that effective collaborative planning depends on information quality, and the trust level firms share. The authors purport: "Collaborative planning activities between supply chain partners are expected to lead to better performing supply chains" (Petersen, Ragatz & Monczka, Introduction section ¶ 1). In addition, numerous other researchers have also explored the perception relating to supplier alliances, that enhanced collaborative planning
Supply Chain Performance Supply chain Indeed, comprehensive measures of supply chain performance including total chain cost can sometimes becomes difficult to develop due to the fact that as the product gets to be known within the market, there can be a fluctuation in demand with large decrease at some points. Supply chain metrics have been associated with internal logistics measures. Failure to have widely accepted definition for supply chain management as well
Second, greater education about the values and benefit of this approach to managing projects needs to be completed (Brady, Maylor, 2010). Third, the inertia and lack of motivation to change needs to be quantified and shown to managers to see how their lack of commitment and urgency are hurting their businesses. All of these factors center on the value of time and its precious nature as a resource (Brady,
In addition to this, the company is pressured into reducing the time in which the product will be recalled, the situation will be analyzed, and the items in case will be replaced with proper ones. The pressure exerted by the public is also very important for the company in handling the product recall. The company must ensure that the public does not turn against the company. In order to achieve this,
When information is shared in confidence, then supply chain members can make better and more informed decisions that will benefit the customer. Strategic alliances happen in a variety of markets with different combinations of suppliers and customers; however, the most typical supplier-consumer alliance involves just a one supplier and one customer. To get a better idea, take a look at the relationship between Wal-Mart and Proctor & Gamble, "which have