Purchasing & Supply Chain Management Essay Example | Topics and Well Written Essays - 1500 words

Purchasing & Supply Chain Management - Essay Example This article shall focus on the matters regarding the competitive edge in the industry with respect to the group’s purchasing and supply chain management. Body Purchasing and supply chain management entails the performance and coordination of numerous activities that takes place both inside and outside an organisation. Research reveals that besides the supply chain that exists within an organisation, there has to be at least one supply chain with another organization. Further, studies reveal that â€Å"the structure of activities within and between companies is a critical cornerstone of creating unique and superior supply chain performance† (Lambert 2005). For Blacks Leisure Group to have an effective purchasing and supply chain management, key players of the chain should be incorporated with the business processes. The company’s processes should be standardised to ensure that there is harmony in linking up processes by purchase and supply chain managers of diffe rent organisations. As earlier mentioned, Leisure industry is very competitive and like any other business in the leisure industry, it is critical for Blacks to develop and sustain competitive advantage. To begin with, Leisure companies throughout the world are now facing enormous challenges because of the globalisation as a result of the enhanced connectivity brought about by the improved technology and the use of internet in doing business. Consequently, Blacks is currently facing very stiff competition from companies from the rapidly industrialised nations like the United States and those from Asian continent. These rival companies, most of which began less than two decades ago, are now tapping into the Blacks market in their quest to spread out their operation base. This may be mainly attributed to more efficient customer service and better distribution channels, networks and transportation as well as enhanced inventory management, material handling and effective communication o n the side of the rival companies. Initially companies were mainly concerned with their customers alone. However, it is rather obvious that the markets have now evolved and Blacks need to change its approach accordingly. Considering that competition may have dire effects on the group like profit declines and being driven out of the business, efforts should be geared towards effective management of their brands and setting up proper market positions. The modern society is a â€Å"now society† in that just like other customers, leisure consumers also want services and products instantly and in the most convenient means possible. As a result, majority of the customers have opted for internet business involving online transactions and thus abandoning tangible companies such as the Blacks Leisure Group. To remain relevant and profitable in the market, Blacks should exploit more on the online business given that marketing environment has changed substantially. Companies that have v entured into online marketing are now posing real competition to Black’s market and are in fact threatening to force them out of the business. It is therefore critical for the Blacks to uphold competitive edge over the online companies by broadening its distribution base in an economical manner, a strategy which is utilised by the rival compani