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Lecture Supply chain management: A global perspective – Chapter 2: Supply chain strategy

This chapter includes contents: What is supply chain strategy? achieving a competitive advantage, building blocks of supply chain strategy, supply chain strategic design, strategic considerations, productivity as a measure of competitiveness. | Chapter 2 Supply Chain Strategy 2-1 Copyright 2011 John Wiley & Sons, Inc. Lecture Outline 2-2 What is Supply Chain Strategy? Achieving a Competitive Advantage Building Blocks of Supply Chain Strategy Supply Chain Strategic Design Strategic Considerations Productivity as a Measure of Competitiveness Copyright 2011 John Wiley & Sons, Inc. What is Supply Chain Strategy? 2-3 Supply Chain Strategy a long-range plan for the design and ongoing management of all supply chain decisions that support the business strategy Copyright 2011 John Wiley & Sons, Inc. What is Supply Chain Strategy? Continued 2-4 Business Strategy a plan for the company that clearly defines the company’s long-term goals, how it plans to achieve these goals, and the way the company plans to differentiate itself from its competitors Copyright 2011 John Wiley & Sons, Inc. Strategic Alignment All organizational functions should be designed to support the business strategy Supply Chain Management (SCM) Marketing Operations . | Chapter 2 Supply Chain Strategy 2-1 Copyright 2011 John Wiley & Sons, Inc. Lecture Outline 2-2 What is Supply Chain Strategy? Achieving a Competitive Advantage Building Blocks of Supply Chain Strategy Supply Chain Strategic Design Strategic Considerations Productivity as a Measure of Competitiveness Copyright 2011 John Wiley & Sons, Inc. What is Supply Chain Strategy? 2-3 Supply Chain Strategy a long-range plan for the design and ongoing management of all supply chain decisions that support the business strategy Copyright 2011 John Wiley & Sons, Inc. What is Supply Chain Strategy? Continued 2-4 Business Strategy a plan for the company that clearly defines the company’s long-term goals, how it plans to achieve these goals, and the way the company plans to differentiate itself from its competitors Copyright 2011 John Wiley & Sons, Inc. Strategic Alignment All organizational functions should be designed to support the business strategy Supply Chain Management (SCM) Marketing Operations Distribution Purchasing Finance 2-5 Copyright 2011 John Wiley & Sons, Inc. Achieving a Competitive Advantage A well designed supply chain can provide companies with needed competitive advantage Two advantages provide a basis of strategy and competitive positioning in the marketplace: Cost-Productivity Advantage Value Advantage 2-6 Copyright 2011 John Wiley & Sons, Inc. Cost-Productivity Advantage Advantage comes from offering the lowest cost product or service Economies of Scale enable the company to spread its fixed costs over a greater volume Experience Curve organizational costs are reduced due to experience that results from processing a higher volume Efficient Supply Chain Network 2-7 Copyright 2011 John Wiley & Sons, Inc. Value Advantage Advantage comes from providing a product with the greatest perceived differential value compare with its competitors Methods to gain a Value Advantage: Identify “Value-Segments” Service 2-8 Copyright 2011 John Wiley & Sons, Inc. Competitive .