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INDUS UNIVERSITY

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 Course Name

• Teacher • Sir. Bilal

• Semester • Fall 2023
• Credit Hours • 03

Faculty of Management Sciences, Indus University 3

Conclusion and Key
Takeaways
S upply chain management is a key driver of business success. B y
optimizing the flow of goods and services, companies can reduce costs,
improve customer satisfaction, and create new opportunities for growth
and innovation.
 create table to compare business model for
•Walmart, Pakistan Steel Mills, a steel service center., Seven-Eleven ,
A supermarket chain
•ober, kareem, bykea, inter city bus service, Shalimar Express
Pakistan, NLC, emiartes airlines, maersk lines,
Company Business Model Description Key Characteristics

Walmart Global retail giant offering a wide High-volume, low-margin retail

range of products at competitive strategy. Extensive supply chain,
prices in large-format stores and cost efficiency, and inventory
online. management.
Pakistan Steel Government-owned integrated steel Large-scale manufacturing, raw
Mills mill involved in the production of material extraction, long lead times,
steel from raw materials. heavy capital investment.
Steel Service Provides steel processing, inventory Short lead times, flexibility in order
Center management, and distribution sizes, value-added services, reduced
services to customers. implied uncertainty.

Seven-Eleven International convenience store Convenient locations, extended

chain with small-format stores hours, quick turnover of products,
offering essential items and services. higher implied uncertainty.
 create table to compare business model for
•ober, kareem, bykea, inter city bus service, Shalimar Express
Pakistan, NLC, emiartes airlines, maersk lines,
Company Business Model Description Key Characteristics
Uber On-demand ride-hailing platform connecting Peer-to-peer model, app-based service,
riders with drivers. dynamic pricing, convenience.
Careem Middle Eastern ride-hailing service acquired by Similar to Uber, focusing on regional market,
Uber. localized features.
Bykea Pakistani ride-hailing and delivery platform Specializes in motorcycle transportation and
offering motorcycle rides and delivery services. local deliveries.

Inter City Bus Provides scheduled bus transportation Fixed routes, scheduled departures, longer
Service between cities. travel distances.
Shalimar Express Train service connecting cities within Pakistan. Rail-based transportation, fixed routes, public
Pakistan service.
NLC National Logistics Cell of Pakistan, involved in Government-owned, diverse logistics services
transportation and logistics services. including transportation, warehousing, and
construction.
Emirates Airlines Major Middle Eastern airline offering global Premium passenger experience, international
passenger and cargo services. routes, cargo logistics.
Maersk Lines Danish shipping company specializing in Container shipping, global logistics, supply
container shipping and logistics. chain management.
Every supply chain has its own competitor supply chain making an industry

Categories Emirates Airlines Etihad Airways Qatar Airways (Al Jazeera Airways)
Founding Year 1985 2003 1993
Hub Dubai International Airport Abu Dhabi International Airport Hamad International Airport (Doha)

Founders Dubai Royal Family Government of Abu Dhabi Qatar Government

Initial Focus - International air travel - International air travel - International air travel
- Rapid expansion of modern - Aggressive expansion with new - Growth with advanced and
Fleet Growth
aircraft aircraft modern aircraft
- Global network covering six - Global reach with a focus on - Expansive route network
Network Expansion
continents connecting the world connecting major cities globally

- Emphasis on luxury and comfort - Premium services and high-class - Known for providing high-quality
Luxurious Experience
in all classes amenities in-flight services

- Highly regarded for service - Received multiple awards for - Recognized as one of the world's
Awards and Rankings
quality and innovation luxury and in-flight experience top airlines
- Utilization of advanced
- High-tech aircraft, premium - Invested in advanced in-flight
Technological Focus technology for passenger
cabins, and modern amenities entertainment and technology
experience
- One of the largest and most - Established presence with - Connects major cities and serves
Global Impact
influential airlines globally international partnerships as a key player in aviation
 explain Competitive Strategy & Key Customer Needs, Demand Uncertainty Spectrum, Responsiveness Level & Supply Chain Capability,
Expanding Strategic Fit across Supply Chain
1. Competitive Strategy & Key Customer Needs: 3. Responsiveness Level & Supply Chain Capability:
Competitive strategy refers to the approach a company takes to gain Responsiveness level refers to how quickly and effectively a supply
an advantage over its rivals in the market. It involves making choices chain can react to changes in demand or market conditions. It's
about how the company will compete and position itself. Key about the ability to adapt to fluctuations in customer
customer needs are the specific requirements and expectations of requirements. Supply chain capability encompasses the
customers that a company aims to fulfill through its products or organization's capacity to perform various supply chain activities
services. The competitive strategy should align with these needs to efficiently, such as sourcing, manufacturing, distribution, and
create a unique value proposition and attract customers. inventory management. The responsiveness level should align with
2. Demand Uncertainty Spectrum: the supply chain's capabilities to meet customer needs.
A "spectrum" is a range or continuum of values, conditions, or 4. Expanding Strategic Fit across Supply Chain:
characteristics that can be observed and measured. It's often Strategic fit refers to the alignment between a company's
used to describe how different instances or situations fall within competitive strategy and its supply chain strategy. Expanding the
a certain scale, from one extreme to another. scope of strategic fit across the supply chain involves ensuring
Demand uncertainty spectrum represents the range of that all supply chain activities, partners, and processes are aligned
unpredictability in customer demand for a company's products or with the company's overall strategy. This alignment enhances
services. It spans from low uncertainty, where demand is relatively efficiency, improves customer satisfaction, and supports the
stable and predictable, to high uncertainty, where demand company's long-term goals. To expand strategic fit, a company
fluctuates significantly due to factors like changing trends, market might work on strengthening collaboration with suppliers,
shifts, or external events. Understanding where a company falls on optimizing production processes, improving demand forecasting,
this spectrum helps determine appropriate supply chain strategies and enhancing distribution networks.
to manage demand variations effectively.
 Every supply chain has its own SCN= Supplier – Producer- Distributor –Retailer – Customer
Every company has its own explain Competitive Strategy & Key Customer Needs, Demand Uncertainty
Spectrum, Responsiveness Level & Supply Chain Capability, Expanding Strategic Fit across Supply Chain like
Company Competitive Strategy & Demand Uncertainty Responsiveness Level & Supply Chain Expanding Strategic Fit across
Key Customer Needs Spectrum Capability Supply Chain
Amazon Dominant e-commerce High demand uncertainty Very high responsiveness, quick and Further integration of AI and
platform offering due to rapidly changing accurate order fulfillment, real-time predictive analytics for demand
convenience, variety, and online consumer behavior inventory management, and efficient forecasting, expansion of warehouse
fast deliveries. and market trends. last-mile delivery. network, and enhancement of
delivery options (e.g., same-day
delivery).
Nordstrom Upscale department store Moderate demand High responsiveness with personalized Enhanced collaboration with high-
providing premium uncertainty from changing customer service, efficient stock end designers, leveraging technology
products, personalized fashion trends and luxury replenishment, and exclusive in-store for virtual shopping experiences, and
service, and luxury preferences. experiences. extending loyalty programs for
shopping experience. customized offerings.
Supermark Offers affordable everyday Moderate demand Moderate responsiveness to ensure Integration of data analytics for
et Chain products with convenience uncertainty influenced by consistent stock levels and adapt to demand forecasting, optimization of
and localized presence. local consumer preferences local demand variations. Efficient store layouts for improved customer
and economic conditions. inventory management and vendor experience, and expansion of local
relationships. sourcing partnerships.

Auto Produces vehicles with Moderate to high demand Balanced responsiveness in Closer collaboration with suppliers
Manufactu quality, innovation, and uncertainty due to shifts in production and delivery, managing for streamlined production
rer brand loyalty across consumer preferences, production fluctuations, maintaining a processes, integration of real-time
various market segments. economic conditions, and network of suppliers. data for vehicle diagnostics, and
technological advancements. expansion of digital customer
engagement platforms.
 Project Planning, Organizing,
Implementation (Scheduling) and
Controlling
Planning and organizing

Implementation
BBA- MBA : Bachelor – Master of Business Administration
Why you do it ? learn skills to be a good Manager that will help you to pursue various management and Organization
administrative roles within a company Mission
Management Process : Planning – Organizing – Implementation -Control
Operation Strategy- is the Action Plan to achieve Smooth Operations of Firm or Functional Area
Mission
Department to achieve Competitive Advantage
Accounts
Productio Marketin
Others…..
n g
Management
Process
Planning Organizin Implementati
Control
(GSOT) g on
Objectiv
Goals Strategy e
Tactics

1- Environmental Scanning –SWOT analysis to

develop
2- Align Strategymission
company’s with respect to Mission
with departmental
mission
Determine the Corporate Mission and Factors
3- Form aMission
Effecting Strategic Fit Solution- 1- Know your
Customer, 2- Know your SC 3- Make best fit
solution
© 2011 Pearson Education, Inc. publishing as
Prentice Hall
 Strategic Management Model
1- Environmental Scanning using Techniques
Environme
ntal
SWOT Scanning –
SW – Strengths Analysi Forecasting
s OT –
and Weaknesses Opportunities
are Internal and Threads are
Qualitative Techniques Quantitative Techniques

Environment of an External Index Number

organization Environment of
Market Research
Method

(within the an organization

departmental (outside of the Past Performance Trend Analysis

areas )
Value Chain Porter’s )
organization
Analysis 5 Internal Forecast
Extrapolation /
Time Series

Forces
Core PESTEL Deductive
Method
Regression
Analysis
Competenc Analysi
y Model s Direct vs. Indirect
Methods
Etc.,….

Jury of Executive
Opinion
© 2011 Pearson Education, Inc. publishing as
Prentice Hall
 2- SWOT Analysis to
develop Strategy with
As we know that Mission-> Strategy-> Vision
respect to Mission
Mission

Internal External Opportunities

Strengths

Analysis
Internal External
Weaknesses Threats

Strategy

© 2011 Pearson Education, Inc. publishing as

Prentice Hall
3- Achieving Uncertainty
Strategic Fit
Implied Demand
Demand Uncertainty Uncertainty-IDU
Customer’s Step 1-Understanding IDU means
understanding SC Uncertainty- which is a
Demand – for a resulting uncertainty for the supply chain
Step 1-Product
KYC (knowing your due to the portion of the demand, the
customer) - overall supply chain is required to handle and
attributes of customer attributes the customer desires
demand
Levels of IDU (IDU= Implied Demand Uncertainty)
Lot size , Response 1- Low IDU & 2 - High IDU
time,
If Customer’s demands attribute increases –leads
Service level , Product High IDU
variety,
If Customer’s demands attribute decreases –leads
Customer’s
Price , Satisfaction
Innovation Step 2 – Understand
Low IDU SC Capability
needs Supply Chain Type & Supply Chain’s
- High Responsiveness Cost
- Responsive -High Responsiveness –High SC
- Low Cost Cost
- Efficient -Low Responsiveness – Low SC
Step 3 – Achieving Strategic Fit - it is to ensure that what the supply chain
2-15 Cost does well is
consistent with target customer’s needs ( Supply Chain= Supplier + Producer + Customer)
 A Strategy-Evaluation Framework (Figure 9-2)
Activity One: Review Underlying Bases of Strategy
Evaluate internal situation Evaluate external situation
Compare revised versus existing Internal Compare revised versus existing External
Audit Information Audit Information

Do significant Yes
differences occur?
Activity
Three:
No

Activity Two: Measure Organizational Performance:

Compare planned versus actual progress toward meeting Take
stated objectives
Corrective

Do significant Actions
Yes
differences occur?

No

Continue present course

Decision Phases of Supply Chain
As a Manager you have to run Management Process that is
Planning (GSOT)- Organizing-Implementation - Control

1 Supply Chain Planning (GSOT)

Developing plans with best fit solutions means
S trategic Fit S olutions
Supply Chain Organizing • Supply chain strategy or design
2
Using supply chain resources and arranging them
according to the plan to create an integrated and
efficient supply chain. 3 Supply Chain implementation- Operations
Scheduling and Execution of organized plans

Supply Chain Control 4

Supply Chain Performance evaluation using set
KPI ( Key Performance Indicators)
Decision Phases of Supply Chain-POIC
Supply Chain Implementation
Supply Chain Planning SC Organizing and implementation • Time horizon is weekly or daily
• Decisions regarding individual customer
Definition of a set of policies that • Decisions about the structure of the supply orders
govern short-term operations chain (suppliers – producer- customers) and • Goal is to implement the operating
• Planning decisions: what processes each stage will perform policies as effectively as possible
– Which markets will be supplied from • Strategic supply chain decisions • Allocate orders to inventory or
which locations – Facilities (where Products to be made like plant production, set order due dates, generate
– Planned buildup of inventories / factory /production house or pick lists at a warehouse, allocate an order
– Subcontracting, backup locations stored like store / DC /Warehouse at various to a particular shipment, set delivery
– Inventory policies locations ) schedules, place replenishment orders
– Timing and size of market promotions – Locations (geographic places: Karachi, UK,
• Must consider in planning decisions Germany)
demand uncertainty, exchange rates, - Capacities of facilities like no of customers, no
competition over the time horizon of units Supply Chain Control using KPI
– Modes of transportation Sourcing KPI :
– Information systems Days payable outstanding,
• Supply chain design must support strategic Average purchase price
objectives Range of purchase price
• Supply chain design decisions are long-term Average purchase quantity
and expensive to reverse Supply quality
– must take into account market uncertainty Supply lead time
Fraction of on-time deliveries
Supplier reliability
Like sourcing, every department
and its areas have their KPI
 Achieving S trategic Fit and S cope

1 Competitive and S upply Chain

S trategies

Aligning competitive and supply chain strategies

Achieving S trategic F it 2
to achieve a competitive edge.
Using strategic fit to create an integrated and
efficient supply chain.
3 Expanding S trategic S cope
Note:
Strategy (action plan) is the part of Expanding strategic scope to create new
Planning and is made at every Level opportunities for growth and innovation.
Whereas
The term “Strategic decisions “ means the
decisions made at Top Level Management
Achieving Strategic Fit and Scope

1 Competitive and Supply Chain

Strategies

Aligning competitive and supply chain strategies

Achieving Strategic Fit 2
to achieve a competitive edge.
Using strategic fit to create an integrated and
efficient supply chain.
3 Expanding Strategic Scope

Expanding strategic scope to create new

opportunities for growth and innovation.
S trategic F it : Strategic fit means that both the competitive and supply chain strategies have the 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

1 Why is strategic F it important? 2 How do you achieve 3 What is strategic F lexibility?

S trategic F it in S C?
Strategic Fit of a small Strategic flexibility is the
organization depicted/showed To achieve strategic
organization's. capability
how well the resources and fit companies need to bring
1. to identify major changes in the
potentiality matched with the consistency between implied
external environment and
proper opportunities, means demand uncertainty and supply
2. quickly commit resources to new
matched from internal to the chain responsiveness.
courses of action in response to
external environment. So it is a 1. For a high implied demand
those changes, and
key factor in deceiving the uncertainty we need a
3. recognize and act. promptly when
ultimate gains of the organization responsive supply chain and
it is time to halt/stop or reverse
so that achieve and carry on 2. for a low implied demand
existing resource commitments
success uncertainty we need an
efficient supply chain
Competitive and
Supply Chain
Strategies
• Competitive strategy defines the
set of customer needs a firm seeks
to satisfy through its products and
services.
• Product development strategy
specifies the portfolio of new
products that the company will try
to develop.
• Supply chain strategy determines
the nature of material
procurement, transportation of
materials, manufacture of product
or creation of service, distribution
of product.
• Marketing and sales strategy
specifies how the market will be
segmented and product will be
positioned, priced, and promoted.

All functional strategies must support one

another and the competitive strategy.
 How Strategic Fit is achieved? 3 Steps process

1 Understanding the customer and

supply chain uncertainty
• Customer - Quantity of product needed in each lot, • Response time ,

Understanding the supply chain capabilities 2 customers will tolerate, • Variety of products needed, • Service level
required
How does the firm best meet demand?
• Price of the product, • Desired rate of innovation in the product
• Supply chain responsiveness is the ability to
• Demand uncertainty is uncertainty of customer demand for a product.
Respond to wide ranges of quantities demanded
• Implied demand uncertainty – resulting uncertainty for the supply chain
Meet short lead times
given the portion of the demand the supply chain must handle and attributes
Handle a large variety of products
3 Achieving
the customer desires Strategic Fit
Build highly innovative products
• Ensure that the degree of supply chain responsiveness
Meet a very high service level
• Assign roles to different stages of the supply chain that ensure the
.
appropriate level of responsiveness.

• Ensure that all functional strategies support the competitive strategy

1- Understanding the customer and supply chain uncertainty
How Strategic Fit is achieved?

Implied Uncertainty and Other Attributes

• Products with uncertain demand are often less mature and
have less direct competition. As a result, margins tend to be
high.
• Forecasting is more accurate when demand has less
uncertainty.
• Increased implied demand uncertainty leads to increased
difficulty in matching supply with demand. For a given
product, this dynamic can lead to either a stock-out or an
oversupply situation.
• Markdowns are high for products with greater implied
demand uncertainty because oversupply often results.
2- Understanding the supply chain capabilities
How Strategic Fit is achieved?
• Responsiveness comes at a cost.
• Supply chain efficiency is the inverse to the cost of
making and delivering the product to the customer.
• The cost-responsiveness efficient frontier curve
shows the lowest possible cost for a given level of
responsiveness.
3- Achieving S trategic F it
How Strategic Fit is achieved?
Extend of Implied Uncertainty for the S upply Chain
Intra – means single or individual
Inter means among many

Intra-operation Scope: The Minimize Local Cost View

Intra-functional Scope: The Minimize Functional Cost View
Inter-functional Scope: The Maximize Company Profit View
Inter-company Scope: The Maximize Supply Chain Surplus View
Future Trends in S upply Chain Management
1 Technology integration 2 S ustainability and social 3 E-commerce and
responsibility omnichannel retail
Explore how emerging
technologies can improve See how companies are Discover how e-commerce is

supply chain visibility, increase adopting more sustainable and transforming the supply chain

efficiency and reduce costs. responsible practices, including and enabling businesses to
circular supply chains and net- create more personalized and
zero emissions targets. seamless shopping
experiences.
Conclusion and Key
Takeaways
Supply chain management is a key driver of business success. By
optimizing the flow of goods and services, companies can reduce costs,
improve customer satisfaction, and create new opportunities for growth
and innovation.
Thank You

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