What does the cost of making and delivering a product to the customer refer to?

The cost of making and delivering a product to the customer pertains specifically to supply chain efficiency. This concept emphasizes the importance of managing costs associated with the production, storage, and distribution of goods within the supply chain. A supply chain that demonstrates high efficiency is able to deliver products to customers at the lowest possible cost while still maintaining quality and meeting delivery timelines.

Efficient supply chain practices focus on optimizing processes, minimizing waste, reducing lead times, and ensuring that resources are utilized effectively. By achieving these efficiencies, companies can enhance their competitiveness in the market and provide better value to customers.

In contrast, supply chain responsiveness relates to the ability of a supply chain to react swiftly to changes in customer demand or market conditions, while supply chain management encompasses the overall coordination and management of supply chain activities. Supply chain strategy involves the long-term planning and design necessary to create a competitive advantage, which includes factors beyond just cost, such as customer service and flexibility.