When Christopher says that “supply chains compete, not companies” what exactly does he mean. Evaluate this statement from the cost point of view

Christopher’s statement, “supply chains compete, not companies,” emphasizes the idea that in today’s interconnected and global business landscape, the effectiveness and efficiency of entire supply chains play a crucial role in competitive advantage, rather than individual companies operating in isolation.

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From a cost perspective, this implies that cost competitiveness is not solely determined by a company’s internal cost management but is heavily influenced by the efficiency and costs incurred throughout the entire supply chain. Companies are interconnected with suppliers, manufacturers, distributors, and logistics providers, and any inefficiency or cost increase at any stage can impact the overall competitiveness of the supply chain.

For example, if a company successfully manages its production costs but faces delays or inefficiencies in the transportation and distribution stages of its supply chain, it may lose its competitive edge. The cost effectiveness of the entire supply chain, from sourcing raw materials to delivering the final product to customers, becomes integral to overall competitiveness.

In evaluating this statement, businesses need to strategically assess and optimize costs across the entire supply chain, fostering collaboration and efficiency at every stage to ensure competitiveness in the market.