Supply chain management (SCM) lessons from copycats and fast followers
Staff -- Supply Chain Management Review, 3/26/2008 10:31:00 AM
AMR Research Inc. recently looked at the challenge of meeting and beating supply chain copycats and fast followers, those companies that legally replicate newly introduced products. AMR defined copycats as companies that product a legitimate product that has been copied without brand infringement. Fast followers are similar to copycats. They produce legitimate products that follow newly introduced products while offering additional innovations in production and distribution. Think Dell.
AMR notes that companies can learn supply chain lessons from the copycat and fast movers in their markets. “Most fast followers are experts at producing small lots of product that they replenish often,” says Tony Friscia, president and CEO at AMR. “The result is very little waste since inventory is kept minimal so as not to over-saturate the channel. This is something that many brand owners have yet to perfect.”
The four major lessons are:
- Reuse—Why reinvent the wheel when you don't have to?
- Inventory management—Keeping it minimal so as not to saturate the market.
- Demand signal is market demand—Stay in tune with the pulse of your market..
- Efficient design and engineering—Get it right the first time without wasting resources.
- Read more from Tony Friscia's article on AMR Research's website.
- Read our full interview with Tony Friscia
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