Strategic Fit
strategic fit
alignment between supply chain strategy & competitive strategy to support business
understanding supply chain strategy
angle for efficiency or responsiveness
supply chain levers
capacity, inventory, time, information, price
achieve strategic fit
consistency between what supply chain does well and the customer needs
customer needs
cost/service criteria and understand unpredictability of demand/supply
competitive strategy
customer needs that company is structured to fill through G&S
breakdowns-supply uncertainty
direct
demand variance-implied uncertainty
direct
evolving production process-supply uncertainty
direct
inflexible capacity-supply uncertainty
direct
innovation rate-implied uncertainty
direct
limited capacity-supply uncertainty
direct
number of channels to access product-implied uncertainty
direct
poor quality-supply uncertainty
direct
product variety-implied uncertainty
direct
responsiveness-uncertainty
direct
service level-implied uncertainty
direct
unpredictable yields-supply uncertainty
direct
capacity lever
flexible capacity decreases uncertainty
information lever
historical forecasts combat uncertainty
supply chain strategy
how company will procure, transport and manufacture successfully to provide G&S
efficiency-uncertainty
indirect
lead time-implied uncertainty
indirect
responsiveness-efficiency
indirect
efficiency
inverse of cost of making/delivering G&S
time lever
lower lead time decreases uncertainty
price lever
lower price decreases uncertainty
product age-uncertainty relationship
newer products have more uncertainty
responsive supply chain capabilities
supply wide range of order quantities and product variety and meet short lead times and high service level
responsiveness goal
to align with implied uncertainty as they have a direct relationship
implied demand uncertainty
uncertainty for portion of demand that supply chain is responsible for
demand uncertainty
uncertainty of customer demand for a product
how to achieve strategic fit
understand customer/supply chain uncertainty, understand supply chain capabilities, achieve fit
inventory lever
use to deal with demand fluctuations
understand customer & supply chain uncertainty
what customer needs in competitive strategy looking to fill and how does that apply stress to the supply chain strategy
