Competitive advantage through operations management

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In recent years there has been a lot of talk about competitive advantage, something that every business seeks. Many debates more specifically focus on how operations management can deliver competitive advantage in different environments. Competitive advantage in operations is normally defined around 4 major concepts: – Cost leader ship, – Short throughput times, – Flexibility and – Reliability.

This article explains how to gain competitive advantages by using an advanced production planning and control system in the corrugated board industry. Cost leadership does not mean that you need to be the cheapest in the market. It is about giving the best price for the right kind of product/service. It can only be achieved when you know — and are able to maintain — the right cost for the right product. In this context, you should not only think about the cost of the box itself, but also about the service around it. Cost leadership can only be achieved through an efficient planning and control process.

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