Competitive Priorities and Capabilities

A customer-driven operations strategy requires a cross-functional effort by all areas of the firm to understand the needs of the firm’s external customers and to specify the operating capabilities the firm requires to outperform its competitors. Such a strategy also addresses the needs of internal customers because the overall performance of the firm depends upon the performance of its core and supporting processes, which must be coordinated to provide the overall desirable outcome for the external customer.

Competitive priorities are the critical operational dimensions a process or supply chain must possess to satisfy internal or external customers, both now and in the future. Competitive priorities are ...

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