Their current supply chain management gives them a competitive advantage, but exclusive contracts would give them a sustainable competitive advantage. Lastly, Regal Marine should institute a system of inventory forecasting. Their current modular system seems demonstrates the importance of short lead times and a fear of obsolescence but they do not appear to engage in any serious forecasting of demand. To do so would help them gain a perspective on their needs, further reducing the need for inventories and easing their fears of obsolescence.

Because supply chain management is a source of competitive advantage for Regal Marine, their competitors can be expected to attempt to match Regal Marine's initiatives. All the advantages Regal Marine has - short lead times, modular design and supplier integration into product development - can be duplicated by competitors. In doing so, they will improve their operations and eliminate a strategic disadvantage. Moreover, the competitors can...
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