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    Chapter 5-Supply Chain Performance

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    Ronit Tandukar
    The document discusses achieving strategic fit between competitive and supply chain strategies. It defines competitive strategy as satisfying customer needs through products and services, while supply chain strategy involves design of inventory, transportation, facilities and information flows. Strategic fit means the two strategies have the same goal of satisfying customer priorities consistently. It is important to understand customer needs regarding quantity, response time, variety, service level and price. Achieving strategic fit ensures supply chain responsiveness matches the implied uncertainty level for the customer.

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    Chapter 5-Supply Chain Performance

    Uploaded by

    Ronit Tandukar
    63 views11 pages
    The document discusses achieving strategic fit between competitive and supply chain strategies. It defines competitive strategy as satisfying customer needs through products and services, while supply chain strategy involves design of inventory, transportation, facilities and information flows. Strategic fit means the two strategies have the same goal of satisfying customer priorities consistently. It is important to understand customer needs regarding quantity, response time, variety, service level and price. Achieving strategic fit ensures supply chain responsiveness matches the implied uncertainty level for the customer.

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    CHAPTER 5-SUPPLY CHAIN PERFORMANCE

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    The document discusses achieving strategic fit between competitive and supply chain strategies. It defines competitive strategy as satisfying customer needs through products and services, while supply chain strategy involves design of inventory, transportation, facilities and information flows. Strategic fit means the two strategies have the same goal of satisfying customer priorities consistently. It is important to understand customer needs regarding quantity, response time, variety, service level and price. Achieving strategic fit ensures supply chain responsiveness matches the implied uncertainty level for the customer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    63 views11 pages

    Chapter 5-Supply Chain Performance

    Uploaded by

    Ronit Tandukar
    The document discusses achieving strategic fit between competitive and supply chain strategies. It defines competitive strategy as satisfying customer needs through products and services, while supply chain strategy involves design of inventory, transportation, facilities and information flows. Strategic fit means the two strategies have the same goal of satisfying customer priorities consistently. It is important to understand customer needs regarding quantity, response time, variety, service level and price. Achieving strategic fit ensures supply chain responsiveness matches the implied uncertainty level for the customer.

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    © All Rights Reserved
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    of 11

    Supply Chain performance:

    Achieving Strategic fit and scope


     Competitive and Supply Chain Strategies
    Achieving Strategic fit
    Understanding the customer
    Understanding the supply chain
    Achieving strategic fit
    Obstacles in achieving strategic fit
     Competitive Strategy
    ◦ The set of customer needs that it seeks to satisfy
    through its products and services.
    ◦ Competitive strategy is built around providing the
    customer with convenience, availability and
    responsiveness.
     Supply Chain Strategy
    ◦ Supply chain strategy includes design decisions
    regarding inventory, transportation, operating
    facilities and information flows.
    ◦ Emphasizes the close relationship between the
    functional strategies within a company
    ◦ To satisfy the customer needs profitably.
     Strategic Fit
    ◦ Meaning: Strategic fit means that both the
    competitive and supply chain strategy have same
    goal.
    ◦ It refers to consistency between the customer
    priorities that the competitive strategy hopes to
    satisfy and the supply chain capabilities that
    the supply chain strategy aims to build.
     Identify the needs of the customer segment
    being served by the following attributes:
    Quantity of product needed in each lot.
    Response Time customers will tolerate
    Variety of products needed
    Service level required
    Price of the product
    Desired rate of innovation in the product.
    • Responsiveness however comes with cost. To
    response wider rage of quantities demand, capacity
    must be increased which increases the cost.
     Achieving Strategic Fit is to ensure that the
    degree of supply chain responsiveness is
    consistent with the implied uncertainty.
     The goal is to target high responsive ness for
    a supply chain facing high implied
    uncertainty and efficiency for a supply chain
    facing low implied uncertainty.
     Increasing variety of products
    ◦ Customer demanding ever more customized
    products
     Decreasing product life cycle
    ◦ Today there are products whose life cycle can be
    measured in months, compared to the old standard
    of years.
     Increasingly demanding customers
    ◦ Customers are constantly demanding improvements
    in delivery lead times, cost and product
    performance.
     Fragmentation of supply chain ownership
    ◦ Most firms have become less vertically integrated as
    companies have shed noncore functions, they have been
    able to take advantage of suppliers and customer
    competencies that they themselves did not have.
     Globalization
    ◦ Adds stress to the chain, because facilities within the
    chain are farther apart, making coordination much more
    difficult.
     Difficulty in executing new strategies
    ◦ Once the good strategy is formulated, the execution of
    the strategy can be more difficult

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