Analyse The Competitiveness Of Danish Manufacturing – Coursework Example
The Procurement of Danish Manufacturing Danish manufacturing is among the top ten in terms of global competitiveness because of the capacities of its industries to advance and modernize. Danish manufacturing systems have adopted supply chain management principles and lean manufacturing methodologies that have increased its competitive advantage in recent years. There is a transformation of the organization of procurement following the adoption of such crucial characteristics1.
Team-based management is a new organizational practice in supply chain management that is useful in procurement processes, especially dealing with suppliers2. Procurers inevitably develop relevant communication methods since they form the supplier-purchaser link that determines success in manufacturing3. In Denmark, the focus on complementary skills is a common practice in use in several manufacturing industries. Better-performing procurement strategies mean better performance financially, especially in the dynamic world that presents unforeseen challenges.
Danish manufacturers identify key stakeholders who influence the procurement process, and engage them to support their overall initiative. Such stakeholders include manufacturers, suppliers, international development agencies, and procurement officers. Through this, it has been able to develop agile manufacturing processes that explore the future4, rather that addressing the current issues affecting business. These unofficial and official cross-functional linkages are essential in the procurement process, and Danish manufacturing apply this appropriately.
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Denmark, alongside, Australia, Norway, Spain, and US are the only countries that showed competitive advantage, as evidenced in the chart above5. Other countries experienced a slower economic growth in a period of twenty-four months6. Danish manufacturing practices not only involves profit-making objectives, but also serves as a strategic role that creates value to industries and the country’s economy as a whole7.
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Competitive Advantage for Small and Medium-Sized Enterprises. Technology Innovation Management Review. November 2012.
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Spiller, P., Reinecke, N., Ungerman, D., and Teixera, H., The Importance of Procurement
Agility: How to Turn Volatility into a Competitive Advantage. Industry week, Jan 14, 2014.
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Labour Costs Trends, 2012.