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Foschini Competitive Advantage Case Study

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Competitive advantage can be defined as a business having a leading advantage over other businesses within the industry in this case being the retail industry, it is also gained by means of giving the customers value for their products in terms of having lower prices and having better benefits for its customers, while insuring that the business is efficient and effective. Business Logistics Management (2016). According to TFG Full Annual Report (2011:135-137). The Foschini group logistics is in charge for the management of stock that they receive from their different suppliers. They then must distribute it to the different group stores in an effective and efficient way to ensure that gain a competitive advantage over other businesses within the industry in South Africa. A competitive advantage can be obtained by means of having distribution cen tres which are responsible for the distributing of the stock function, these functions include receiving, storage, picking, packing and the distributing of the stock. The different Distribution centres helped in the distribution of 48.2 million units of stock, this initially lead to an increase of 23%. This is recorded as the highest that the company has managed to obtain in its history. The group was able to …show more content…

The effectiveness and the efficiency of having the goods delivered accurately helps in achieving the groups competitive advantage, as this will lead to customer satisfaction as they will be able to obtain their products in time and at the right place. This improvement in the measured and the correctly delivered orders improved from 77% to 91%. Thus leading to the reliability of the groups supply chain, leading to the increased accountability of their supplier. TFG Full Annual Report

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