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Operations

Oulbdifiri logistics

MarteftQ an (j sales

The Generic Villus Chain

Souw. Repf -ieJ w in \ ¡c pirn sson pi The R";ij Press ¿in :nrif'iDl d Simon RËctiuSIai iron; r." ciweI i. Fofiîr. CtwipiT-'L-c Adwvttage. Creafay mi Sustain^/Siiivmi Pi!;!orniatKe Cto, ghMS35l7/M ■■"; "[ Pwler chandlse to the stores almost at the rate it moves off the shelf.9 The idea is to manage Hows of goods, not stocks of goods. Wal-Mart has turned Overthii responsibility to its lending ten dors in a system known as vend or-managed Inventories VMfl.

Strong companies atii also rectigineeding the work flows and building cross-functional teams responsible for each process.'" At Xerox, a Customer Operations Group links soles, shipping, installation, service, and billing so that these activities (low smoothly into one another. Winning companies are those thai excel at managing core business processes through cross ■functional teams. AT&T, polaroid, and Motorola have rcorgataijtid (heir employees Into cross-functional teams; cross-functional teams tire also round in nonprofit and government organizations as well. Drug store chain Itlte Aid is using cross-functional teams to try m push its store horn third to First place in the drug store hierarchy. The com pony has created leains to focus on sales and margin growth, operational excellence, market optimization, continued supply chain improvements, and continued cost control.11

To he successful, it firm also needs to look for competitive advantages beyond its own operations, into the value chains of suppliers, distributors, and customers. Many companies today have partnered with specific suppliers and distributors to create a superior value delivery network also called a supply chain,51

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