Supply Chain Strategy

1576 Words Nov 21st, 2010 7 Pages
Supply-Chain Management

Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.

1 Supply Chain Strategy Across the Organization

Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential
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The Customer relationship, Order fulfillment, and Supplier relationship processes need to be analyzed from the perspective of process structure, process improvement, layout, and capacity.

4 Supply Chain Strategies

1 Strategic focus

A supply chain is a net work of firms. Thus, each firm in the chain should build its own supply chains to support the competitive priorities of its services or products. Two distinct designs used to competitive advantage are efficient supply chains and responsive supply chains. Efficient supply chains work best in environments where demand is highly predictable. The focus of the supply chain is on efficient flows of services and materials keeping inventories to a minimum. The firm’s competitive priorities are low-cost operations, consistent quality, and on-time delivery. Responsive supply chains designed to react quickly in order to hedge against uncertainties in demand. Work best when firms offer a great variety of services or products and demand predictability is low. Typical competitive priorities are development speed, fast delivery times, customization, variety, volume flexibility, and top quality. Tables below show the environments and design features that best suit each design.

Environments Best Suited for Efficient and Responsive Supply Chains

Design Features for Efficient and Responsive Supply Chains

Combining efficient and responsive supply chains may be necessary

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