In the 90’s, Dell beat competitors with supply chain efficiency; however, their competitors were able to copy this competitive advantage to the point that it became a market expectation. Apple turns its inventory over every 5 days; Dell every 10 days and Samsung every 21 days. Wal-Mart is known for its use of technology when integrating with partners to improve efficiencies.
In terms of delivery in the US, there are three primary options: the United States Postal Service, UPS and Fed Ex….regarding labor costs as a percent of expenses, these are 80%, 53% and 32% respectively. It is clear which one is making money, and which one is losing money.
Do you manage your supply chain efficiently? Your labor costs?
