Professional Documents
Culture Documents
Integration
Dr. R K Singh
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Business Strategy
New Product Marketing
Strategy
Strategy
New
Product
Development
Marketing
and
Operations Distribution Service
Sales
Strategic fit:
Consistency between customer priorities of
competitive strategy and supply chain
capabilities specified by the supply chain
strategy
Competitive and supply chain strategies have
the same goals
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Implied
Demand
Uncertainty
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High Fashion
Palm top computer
Entirely new products
Customer Need
Price
Responsiveness
Low
High
Low Implied
Uncertainty
Low
High Implied
Uncertainty
High
10%
40%-100%
1%-2%
10%-40%
10%-25%
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Low
Cost
High
Low
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Responsiveness Spectrum
Highly
efficient
Integrated
steel mill
Somewhat
efficient
Hanes
apparel
Somewhat
responsive
Most
automotive
production
Highly
responsive
Dell
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Responsiven
ess spectrum
Efficient
supply chain
Certain
demand
Implied
uncertainty
spectrum
Uncertain
demand
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Responsive
Primary goal
Lowest cost
Quick response
Product design
strategy
Modularity to allow
postponement
Pricing strategy
Lower margins
Higher margins
Mfg strategy
High utilization
Capacity flexibility
Inventory strategy
Minimize inventory
Buffer inventory
Supplier selection
strategy
Transportation
strategy
Greater reliance on
responsive (fast) modes
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Growth
Practical to
change price
or quality
image
Strengthen
niche
Maturity
Poor time to
change image,
price or quality
Competitive costs
become critical
Defend market
position
Decline
Cost control
critical
Sales
Time
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Responsiven
ess spectrum
Efficient
supply chain
Product
Maturity
Implied
uncertainty
spectrum
Product
introduction
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Five categories:
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Strategic Scope
Suppliers Manufacturer Distributor
Retailer
Customer
Competitiv
e Strategy
Product Dev.
Strategy
Supply Chain
Strategy
Marketing
Strategy
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Strategic Scope:
Intracompany Intraoperation Scope
Suppliers Manufacturer Distributor
Retailer
Customer
Competitiv
e Strategy
Product Dev.
Strategy
Supply Chain
Strategy
Marketing
Strategy
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Strategic Scope:
Intracompany Intrafunctional
Scope
Suppliers Manufacturer Distributor Retailer
Customer
Competitiv
e Strategy
Product Dev.
Strategy
Supply Chain
Strategy
Marketing
Strategy
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Strategic Scope:
Intracompany Interfunctional
Scope
Suppliers Manufacturer Distributor Retailer
Customer
Competitiv
e Strategy
Product Dev.
Strategy
Supply Chain
Strategy
Marketing
Strategy
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Intercompany
Interfunctional Scope
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Strategic Scope:
Intercompany Interfunctional
Scope
Suppliers Manufacturer Distributor Retailer
Customer
Competitiv
e Strategy
Product Dev.
Strategy
Supply Chain
Strategy
Marketing
Strategy
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Flexible Intercompany
Interfunctional Scope
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Facilities
Inventory
Transportation
Information
A Framework for
Structuring Drivers
Efficiency
Responsiveness
Supply chain structure
Facilities
Transportation
Inventory
Information
Drivers
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Obstacles to Achieving
Strategic Fit
Increasing variety of products
Decreasing product life cycles
Increasingly demanding customers
Fragmentation of supply chain ownership
Globalization
Difficulty executing new strategies
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35
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SCM Practices
Mass customization- Ability of company to deliver
highly customized products and services to different
customers around the world . Key for it is postponing
the task of differentiating a product for a specific
customer until the latest possible point in the supply
network.-Asian Paints
3PL- It is use of an outside company to perform all or
part of firms materials management and product
distribution functions.
Cross-Docking-Warehouses function as inventory
coordination points rather than storage points.-WalMart delivers about 80% of its goods utilizing cross
docking technique.
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SCM Practices
CPFR- Focuses on information sharing among supply
chain trading partners for purpose of planning,
forecasting, and inventory replenishment. Ex-WalMart and Proctor & Gamble
Electronic data interchange (EDI)-is the direct,
computer to computer transmission of
interorganisational transactions, including purchase
orders, shipping notices, debit or credit memos, and
more. Ex-Wal-Mart has a satellite network for
electronic data interchange that allows vendors to
directly access point of sales data in real time
enabling them to better forecasting and inventory
management.
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SCM Practices
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Type of product
Functional
Innovative
Level of
customization
Logistics
Supplier relations
Process capability
Customer service
Information sharing
Organizational structure
E-business readiness
Type of
industry
Chemicals
Food
Length of
product life
cycle
Thank You
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