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CAPTURE COMPETITIVE ADVANTAGE THROUGH RESPONSE MANAGEMENT

By Littleson, Randy
Publication: Industry Week
Date: Tuesday, November 1 2005
HEADNOTE

Response Management

Many organizations are finding it increasingly difficult to position themselves for market success because market situations are changing faster than strategies can be developed. New competitors

appear with unique approaches, product life cycles continue to get shorter, and customers demand immediate response.

In a highly outsourced manufacturing environment, the ripple effect of unexpected changes is even more pronounced. And the impact of change can be felt across all business processes, from sales and operations planning to new product introductions to procurement-intensifying the effect of any response, whether negative or positive.

Historically, companies have made strategic investments in solutions designed to run the business like clockwork. But as the pace of change continues to accelerate-and as the nature of change becomes less incremental and more discontinuous-this goal is rapidly yielding to the need to manage the business when it doesn't run like clockwork. Traditional topdown planning approaches are no longer sufficient. They have been superseded by the need to develop a core competency in responding to constant changes in supply, demand, capacity, and product.

In addition, make sure to read these articles:

Managing an Outsourced Supply Chain
Interview with Dr. Leroy Schwarz, professor at the Krannert Graduate School of Management, Purdue University.