Strategy Supply Chain Essay

2774 words - 12 pages

Supply Chain Strategy
The Importance of Aligning Your Strategies

UPS Supply Chain SolutionsSM

Copyright © 2005 United Parcel Service of America, Inc. All Rights Reserved.
No part of this publication may be reproduced without the prior written permission of UPS Supply Chain Solutions.

Our Insight.
A UPS Supply Chain Solutions
White Paper

Chances are you’ve heard the term supply chain strategy. Used informally, it is
often confused with supply chain management, where supply chain operations are
controlled to reduce costs. There’s some truth to this definition, but supply chain
strategy really is broader; it defines how the supply chain should operate in order
...view middle of the document...

chain strategy also focuses on driving down operational costs and maximizing
efficiencies. For example, an organization may choose a strategy directed at
supplier management as a way to remain competitive. By providing
a clear purpose, the organization keeps sight of the strategy and is able to devise
tactical steps to achieve these goals. Another reason for having a supply chain
strategy is to establish how you work with your supply chain partners, including
suppliers, distributors, customers, and even your customers’ customers. As the
marketplace becomes more competitive, it is critical to reinforce existing
relationships and work together. And for all these reasons, a well executed
supply chain strategy results in value creation for the organization.

Developing a Supply Chain Strategy
Understand the Business Strategy
The first step is for supply chain executives to clearly understand how the
enterprise chooses to compete. This is important not only for the obvious reason
of working off the “same play book,” but also for the reason that it forces the
supply chain operation to see itself as a customer facing entity serving the
competitive goals of the enterprise—not merely an operational department.
Supply chain strategy is not simply a linear derivative of the business strategy.
At best, supply chain strategy can be the enabler of the business strategy. If the
business strategy is to be the low cost provider, the supply chain strategy should
support this. And just like when developing a business strategy, look to your core
competencies, focus, and means of differentiation when developing a supply chain
strategy. Being able to strategically source parts at an attractive price may support

UPS Supply Chain Solutions


both your supply chain strategy and business strategy, but only if you have the
capabilities to do so effectively. Look to your supply chain competencies and
leverage what you do well. You may want to focus on a particular market or
segment in which to gain supply chain efficiencies. Or you may want to
differentiate your organization operationally by providing lower costs to
customers or providing services that other industry players are unable to do.

Assess the Extended Supply Chain

A formal supply chain
assessment by a non-biased
outside party may assist
you in better understanding
your...opportunities for

The next step is to conduct a detailed, realistic assessment of the capabilities that
exist within the organization and even the extended supply chain. Begin by closely
scrutinizing your organization’s assets and evaluate how well they support the
strategy. Old machinery and disparate systems may mean high operational
overhead and costly process inefficiencies and redundancies – clearly not
supportive of a low cost provider strategy. A formal supply chain assessment by a
non-biased outside party may assist you in better understanding your operational...

Other assignments on Strategy Supply Chain

Conclusion And Future Model For Supply Chain - Toyota

528 words - 3 pages , reducing dependence on any one form of logistics model (e.g., air freight, rail, road transport) would have a significant impact. Although this is not easy for global sourcing, supply risk reduction can protect automotive organization by developing alternative sources of domestic supply to complement global ones. Conclusion The most value-add fix to the supply chain is sufficient contingency planning and managing the complexity of the supply chain. The development a risk management strategy that will work is necessary to create a shared organization-wide understanding of supply-chain risk. Japanese Auto Supply Chain System

Dss In Supply Chain Management And Design

2843 words - 12 pages the environment Besides the incremental improvement business processes and systems support within the internal supply chain management, Intel is putting effort in the overall strategic programs and supply chain design (i.e. adding VMI hubs to be closer to customer, changing the replenishment model to improve inventory management, etc.). The foundation of this new and improved supply chain strategy is a companywide effort to cut the reduced

Barilla Spa Case

1295 words - 6 pages before the item is needed. Barilla SpA has adopted this approach in its distribution strategy. Erecting the structural framework is no doubt a relatively easier task for an organization that has a dominant position in the supply chain. For Barilla SpA to implement a just in- time distribution (JITD) system that provides visibility on the demands that customers made on Barilla’s distributors and retailers. With such a visibility, Barilla was able

Zara–Rapid Fire Fulfillment

865 words - 4 pages competitors; however, Zara has been doing this for decades successfully with large profits. The key to this is Zara’s supply chain. Zara controls more of the manufacturing and supply chain then that of other retailers which gives them a competitive advantage. To begin with, Zara has to have a business and operational strategy and these both need to be in sync. The company’s main strategy is “achieving growth through diversification with


3758 words - 16 pages advantages. A project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain. This process helps improve integration and reduces costs and increases speed. 3. Describe APS efforts. Programs that use algorithms to identify optimal solutions to complex planning problems that are bound by constraints. 4. Describe PLM. PLM is a business strategy that enables

Dell's Supply Chain

567 words - 3 pages that are all Dell’s hardware. I am a very happy customer and I will continue to buy from Dell as long as they keep innovating great technology. Reference Chopra, S., & Meindl, P. (2012). Supply chain management: Strategy, planning, and operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.

Article Review

594 words - 3 pages I can’t say a whole lot about the supply chain details about the company I work for due to the fact that most of the ordering is done by a case by case basis. I work as a maintenance supervisor for a property management company in the Denver, CO area. Each property is different, so depending on the age of the property, will depend on what supplies is needed. The property that I work at was just recently bought by the company I work for. Most of

1fldj As

1699 words - 7 pages Chapter 1 Introduction to Operations and Supply Chain Management 1-1 Lecture Outline • Why do we need to study Production & Operations Management? • What Operations and Supply Chain Managers Do? • The Operations Function • Evolution of Operations and Supply Chain Management • Globalization • Productivity and Competitiveness • Strategy and Operations • Learning Objectives for This Course Copyright 2011 John Wiley & Sons, Inc. 1-2

Operations And Supply Chain Management

4042 words - 17 pages strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment.  True    False   21. Supply and demand planning is needed to coordinate the manufacturing, service, and supply chain processes.  True    False   22. Supply and demand planning involves forecasting demand, making intermediate term plans for how demand will be met, controlling different types of inventory, but not the

Strategies Push And Pill

387 words - 2 pages Push Strategy: Push strategy is where companies forecast demand before ordering based on the willing buyers and also the goods doesn’t runout unexpectedly. For example winter jackets are required by retailers during the end of summer or during start of fall and winter. Companies can predict in their supply chain as they know what will be needed long before their demand actually arrives. So the main disadvantage in Push system is it’s purely

Amul Supply Chain

2012 words - 9 pages Amul [pic] Amul’s strategy is broadly divided into two components: The first one is the collection chain and the second one is the Supply chain. The collection chain starts from weighing the milk to determination of the fat content in the milk to finally calculation of the purchase price. While the supply chain starts from storing the milk to processing the milk to finally distributing the milk. Amul’s

Similar Documents

Hello Essay

409 words - 2 pages Chapter 2 Review Questions 1). Competitive strategy defines the set of customer needs a firm seeks to satisfy through its products and services. Value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. Supply Chain Strategy is an iterative process that evaluates the cost- benefit trade-offs of operational components. Business

Supply Chain Essay

1621 words - 7 pages between and among stages in a supply chain to maximise total supply chain profitability Decision Phases Three categories - Depending on the frequency of each decision and the time frame over which a decision has an impact, Supply chain strategy or design Supply chain planning Supply chain operation Supply chain strategy • Decides how to structure the supply chain over the next several years - chain configuration, - resource allocated and - process

Supply Chain Essay

909 words - 4 pages automotive firms, but for other firms as well, for example supermarket or restaurant. Manufacturing firms and other firms are actually similar; they have suppliers and customers. For every business, it is important to make a strategic decision and supply chain management helps them to make it. Supply chain can help a company to determine their selling product and match with the strategy they have to do to create competitive advantages. For firms

Ssss Essay

274 words - 2 pages provide information to the manufacturer on the level of demand for the product, and also provide feedback to the customer on promised delivery schedules. Supply chain management software provides reporting modules to track both current demand and answer a range of ‘what if’ questions to assist in the prediction of future demand depending on changes in strategy.