SUPPLY CHAIN PERFORMANCE

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SUPPLY CHAIN PERFORMANCE

• Achieving Strategic Fit and Scope

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AGENDA

• STRATEGIES
• ACHIEVING FIT
• EXPANDING SCOPE

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COMPETITIVE AND SUPPLY CHAIN STRATEGIES

• Section 2.1

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COMPETITIVE

• Defines
• Set of Customer Needs
• Satisfy Trough Goods and Services

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COMPETITIVE

• Examples
• Low price
• Availability
• Convenience
• Customization
• Other

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STRATEGIES

• COMPETITIVE
• AND
• SUPPLY CHAIN

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VALUE CHAIN
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VALUE CHAIN

• Portfolio

• Make or Buy

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VALUE CHAIN

• Segment
• Target
• Position
• Mix

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VALUE CHAIN
SUPPLY CHAIN
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ACHIEVING STRATEGIC FIT

• Section 2.2

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ACHEIVING

• Step 1 Understand the Customer
• Attributes
• Lot Quantity
• Response Time
• Variety of Products
• Service Level
• Price
• Rate of Innovation

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ACHEIVING

• Step 1 Understand the Customer
• Uncertainty
• (of) Demand
• Implied Demand
• Portion of Demand Supply Chain Expected to Handle
• Customer Desires

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ACHEIVING

• Step 1 Understand the Customer
• Uncertainty

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ACHEIVING

• Step 1 Understand the Customer
• Uncertainty

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ACHEIVING

• Step 2 Understand the Supply Chain
• Trade-Off
• Responsiveness
• Efficiency

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ACHEIVING

• Step 2 Understand the Supply Chain
• Responsiveness
• Ranges of Quantity Demanded
• Lead Times
• Variety of Products
• Innovative Products
• Service Level

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ACHEIVING

• Step 2 Understand the Supply Chain
• Efficiency
• Achieve Target (effective)
• Lowest Total Cost
• Inversely Related to Responsiveness

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ACHEIVING

• Step 2 Understand the Supply Chain
• Responsiveness - Efficient Frontier

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ACHEIVING

• Step 3 Achieving Strategic Fit
• Consistency Between
• Implied Demand Uncertainty
• Supply Chain Responsiveness

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ACHEIVING

• Step 3 Achieving Strategic Fit

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ACHEIVING

• Step 3 Achieving Strategic Fit

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ACHEIVING

• Step 3 Achieving Strategic Fit

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ACHEIVING

• Other Considerations
• Multiple Products and Segments
• Choices
• Separate Supply Chains
• Tailored Supply Chain

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ACHEIVING

• Other Considerations
• Multiple Products and Segments
• Tailored (potentially) Provides
• Economies of Scale
• Economies of Scope

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ACHEIVING

• Other Considerations
• Product Life Cycle
• Beginning Stages
• Demand Uncertain
• Margins High
• Product Availability Crucial
• Cost Often Secondary Consideration

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ACHEIVING

• Other Considerations
• Product Life Cycle
• Later Stages
• Demand More Certain
• Margins Lower
• Price Becomes Significant Factor

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ACHEIVING

• Other Considerations
• Product Life Cycle

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EXPANDING STRATEGIC SCOPE

• Section 2.3

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ALTERNATIVES

• Intracompany Intraoperational Minimize Local
  Cost

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ALTERNATIVES

• Intracompany Intraoperational Minimize
  Functional Cost

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ALTERNATIVES

• Intracompany Interoperational Maximize Company
  Profit

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ALTERNATIVES

• Intercompany Interoperational Maximize Supply
  Chain Surplus

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SUMMARY AND CONCLUSIONS