SCM370 2

  1. 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.
  2. 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.
  3. cost or productivity advantage
    offer lowest cost. consider impact of experience curve in keeping costs down
  4. 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
  5. building blocks of supply chain strategy
    • operations
    • souricng
    • distribution
    • customer service
  6. 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
  7. 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)
  8. distribution strategy
    plans to get product and services to customer. Question of middle men (channel intermediaries) or to customers. consider market segmentation analysis
  9. sourcing strategy
    what business will be outsourced and what retained internally. includes decisions about supplies and component parts, relationships
  10. loss of control
    as scope of task passed increases, ability to retain control of task or function decreases
  11. dependency risk
    with more sophisticated sourcing engagements, firm may adapt operations to fit vendor
  12. 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.
  13. strategic design
    strategic design - way company competes in market place; cost, time, innovation, quality (product traceability), service
  14. 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)
  15. supply chain masters
    ability to strong arm suppliers to compliance
  16. strategic consideerations
    • small v. large
    • adaptability
  17. measure productivity
    productivity  = output/input
Card Set
SCM370 2
Chapter 2