What Is A Supply Chain Strategy?

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What is a Supply Chain? A supply chain comprise of all parties implicated, directly or indirectly, in satisfying a customer demand. The supply chain not only comprises of manufacturer and suppliers, but also includes transporters, warehouses, retailers, and customers themselves. Inside each business unit, such as supplier, the supply chain includes all functions involved in receiving and filling a customer request. A supply chain is vibrant and involves the invariable flow of information, product and funds between different stages A typical supply chain may involve following stages • Customers • Retailers • Wholesalers/Distributors • Manufacturers • Component/Raw material suppliers Every stage is not supposed to be present in a supply chain. The appropriate design and strategy of the supply chain will depend on both the customer’s needs and the roles of the stages involved.(1) What is Supply Chain Strategy? Dan Gilmore in his article defined supply chain strategy as “A supply chain strategy involves adding a new rudder, with a captain and a crew that know exactly how to get to their destination, but with a plan that has some resiliency built-in for the inevitable storms the ship will encounter along the way”. Dan Gilmore (2) Different Supply Chain Strategies according to Literature Review: Strategic management of the supply chain calls for a system, in which an incorporated supply chain strategy is critical to develop a value creating process between supply chain

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