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business strategy
is a plan for the company that clearly defines long term goals, how to achieve, and differentiation. should leverage core competencies. All org finctions should support business strategy.
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supply chain strategy
long range plan for the design and ongoing management of all supply chain decisions that support business strategy. should be developed to drive and support business strategy.
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cost or productivity advantage
offer lowest cost. consider impact of experience curve in keeping costs down
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value advantage
providing product with greatest percieved differential value compared with competitors. values segments, service to add value. success comes from both value and cost
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building blocks of supply chain strategy
- operations
- souricng
- distribution
- customer service
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operations strategy
involves decisions of how it will produce goods and services. determines design and mgmt of manufacturing and internal processes, use of equip and info tech, and employee skill needed
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product positioning strategy
important for operations. degree of product customization offered. make-to-stock (assembly line, demand anticipation), assemble-to-order (generic form till ordered), make-to-order (infrequent demand)
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distribution strategy
plans to get product and services to customer. Question of middle men (channel intermediaries) or to customers. consider market segmentation analysis
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sourcing strategy
what business will be outsourced and what retained internally. includes decisions about supplies and component parts, relationships
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loss of control
as scope of task passed increases, ability to retain control of task or function decreases
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dependency risk
with more sophisticated sourcing engagements, firm may adapt operations to fit vendor
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customer service strategy
should be based first on overall volume and profitability or market segments, then understand what customers of segement want and how to satisfy.
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strategic design
strategic design - way company competes in market place; cost, time, innovation, quality (product traceability), service
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why not all dimensions?
cant be great all over. focus on order winners (characterisitc that win orders, excel here) and order qualifiers (charactersistics that qualify firm to be in a particular market, stay on par)
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supply chain masters
ability to strong arm suppliers to compliance
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strategic consideerations
- small v. large
- adaptability
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measure productivity
productivity = output/input
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