Core Competency

Those activities through which an organization achieves a sustainable competitive advantage. Core competencies are seen as processes that are central to the way an organization works. It fulfills three criteria:

1) It provides consumer benefits.

2) It is not easy for competitors to imitate.

3) It can be leveraged widely to many products and markets.

A core competency can take various forms, including technical/subject know-how, a reliable process and/or close relationships with customers and suppliers. It may also include product development or culture, such as employee dedication. (Modified from Council of Supply Chain Management Professionals glossary of terms.)

>>Learn more about core competencies in Future of Sourcing