Supply Chain Strategy

1196 Words5 Pages
A supply chain strategy is a plan with goals and objectives. It is about using all of the elements involved in the sourcing and procurement of goods and services to produce better results for the company. Typically, strategy is aimed at achieving objectives such as pushing a new product development faster, improving the use of current technologies, bringing products and services to market faster, minimizing resource investment, and reducing specific costs and response/cycle times. Supply chain strategy is often confused with supply chain management, even though it is a lot broader, which explains why many people traditionally call it “supply strategy”, “operations strategy”, and “logistics strategy”. It defines what processes within the…show more content…
It is used as the basis for all demand planning activities. The constrained functional plan is used to translate the unconstrained demand forecast by incorporating constraints in it. It can then be used to develop plans to optimize their logistics system performance. Following the process planning, the company is ready to evaluate its supply chain.
The firm should conduct a realistic assessment of its capabilities. It needs to determine the activity requirements that match the supply chain’s objectives and their optimal configuration in sequences when it comes to market response and cost. Furthermore, its assets will play a very important role and need to be closely evaluated. For example, if the firm uses old machinery or old technologies, that may interfere with their initial competitive strategy to provide high quality goods. Also, the same evaluation needs to be done for the extended supply chain. It is recommended that this evaluation be done by a non-biased third party. This way, the firm can have a good understanding of its strengths and weaknesses, and where they should focus in making improvements or even capital investments. This is the right time to make changes in the supply chain strategy. Once this assessment is complete, a team needs to be formed to prioritize recommendations, identify opportunities and risks, and put together the requirements for the
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