WEEK 1: SUPPLY CHAIN STRATEGIC FIT 1
Week 1 Discussion: Supply Chain Strategic Fit
Kelli Ware
School of Business, Liberty University
Introduction
Managing supply chain operations efficiently is the cornerstone of success for any
organization which facilitates consumer value delivery and cost optimization across the full
spectrum of the supply chain. As detailed by Chopra (2018) and Kumar et al. (2022), achieving
strategic fit necessitates the alignment of a firm’s supply chain processes with the dynamics of
consumer needs and market demand. Moreover, the firm’s performance and responsiveness
within each of these processes are imperative considering the impacts of demand uncertainty
that causes the dynamism (Kumar et al., 2022). The first chapter of the course text outlines the
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significance of understanding the elements of a supply chain and the workflows it uses to satisfy
the consumer while increasing surplus and profitability. The elements of the process are vital to
the operation of firms like Dell, Gap, Amazon, and companies in the beverage and automotive
industries. The following analysis responds to seven research questions derived from the
content in chapter one.
Consider the purchase of a can of soda at a convenience store. Describe the various stages
in the supply chain and the different flows involved.
There are three main phases of the supply chain management which are strategy,
planning, and operations with each having different touchpoints such as suppliers,
manufacturers, distributors, and retailer (Chopra, 2018). A can of soda begins at the raw
materials stage where suppliers determine the type of metal to be used in manufacturing, the
manufacturer produces the product, the product is shipped to distributors who deliver the
product to a retailers and make the soda available for purchase (Kechagias et al., 2020).
Why should a firm such as Dell take into account total supply chain profitability when
making decisions?
Dell’s direct to customer sales strategy made it extremely popular when it began its
customization operating model, but the company had to shift in order to maintain strategic fit
and alignment with shifts in market demand (Chopra, 2018). As such, it behooves firms akin to
Dell that do not touch every point in the supply chain to consider total supply chain profitability
to maximize the value it provides to its current consumers while balancing responsiveness and
incurred costs (Chopra, 2018). In doing so Dell ensures alignment with consumer demand, cost
efficiency and responsiveness which maximizes its overall competitive edge.
What are some strategic, planning, and operational decisions that must be made by an
apparel retailer such as Gap?
Apparel manufacturing is a multi-billion-dollar industry and as such, there are major
decisions regarding supply chain design, planning and operations that companies such as Gap,
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Inc. must make. While accounting for demand uncertainty and corporate social responsibility,
clothing manufactures must decide on a strategy to deliver the merchandise to consumers
(online vs. physical locations), location of distribution centers, where and how to sustainably
source materials to manufacture the goods (Chopra, 2018). Planning decisions include
forecasting seasonal demand forecasting, inventory management and suppliers. Operational
decisions include pricing and promotion along with inventory management in light of mixed
sales methods that include online and in-store orders (Chopra, 2018).
Consider the supply chain involved when a customer purchases a book at a bookstore.
Identify the cycles in this supply chain and the location of the push/pull boundary.
The cycles in a supply chain when a consumer purchases a book at a physical store
location are the customer order, replenishment, and the procurement cycles (Chopra, 2018).
Once a consumer purchases a book, the inventory management system is updated and prompts
the retailer to replenish the purchased product. The location of the push/pull boundary in that
process is between the customer order cycle and the replenishment cycle which is triggered by
a change in inventory (Chopra, 2018). The push phase encompasses printing and distributing
the books while the pull phase encompasses the reduction in inventory that occurs when a
book is purchased (Chopra, 2018).
Consider the supply chain involved when a customer orders a book from Amazon. Identify
the push/pull boundary and two processes each in the push and pull phases.
The supply chain required for a book purchase from Amazon differs slightly from a book
purchase made at a brick-and-mortar location. The parts of the supply chain include the
consumer, website operations, the supplier of the printed book, the warehouse, and the
delivery driver (Chopra, 2018). The push/pull cycle differs because when a consumer places a
book order, Amazon becomes the supplier to the customer which makes it part of the customer
cycle, but when Amazon purchases books from a publisher to restock its inventory, Amazon
shifts and becomes part of the replenishment cycle (Chopra, 2018). The pull boundary is
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triggered at the customer cycle when the order is placed on Amazon’s website and the push
boundary is activated when Amazon orders more books from the publisher (Chopra, 2018). Two
processes in the push phase are order fulfillment and delivery of the product and two phases in
the pull phase are orders of books from the publisher and the warehousing of the replenished
inventory. The push phase is considered uncertain due to the ambiguity of consumer demand
whereas the pull phase is considered foreseeable because demand can be calculated.
In what way do supply chain flows affect the success or failure of a firm such as Amazon?
List two supply chain decisions that have a significant impact on supply chain profitability.
All supply chain flows have a direct impact on costs incurred and profitability. The flow of
communication flows, product movement, and revenue flows must be meticulously managed to
sustain success (Chopra, 2018). Due to the size of its extra-global operation, the flows that are
primary to Amazon’s success are information and product flows. The slightest
miscommunication or delay in distribution has to potential to negatively impact the company’s
success on a large scale and with the introduction of Amazon Prime, that decision alone has
secured its success for decades to come (Maddock-James, 2025). Amazon Prime was a supply
chain decision that directly impacted their order fulfillment and transportation strategies by
shifting cost savings from deliveries directly to consumers which boosted its profitability and
carved out a competitive advantage that is difficult to beat (Maddock-James, 2025). The second
supply chain decision that impacted Amazon’s profitability was surrounding its inventory
management strategy. The company expanded its warehouse locations to over 200 globally
allowing it to accelerate order fulfillment, thus increasing customer value, and boosting
profitability (Chopra, 2018).
List some of the strategic, planning, and operational decisions that an automotive
manufacturer must make with regards to its supply chain.
The automotive industry has a fairly large and complex supply chain that encompasses
multiple supplier types, manufacturing plants, vehicle transporting, dealerships, salespeople,
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and car buyers (commercial and individual). There are numerous operational supply chain
decisions that must be made to include the number of manufacturing plants, the capability of
each plant, and where the plants should be located (Chopra, 2018). When considering demand
uncertainty, socio-economic dynamism and other associated risks, automotive executives must
also make strategic decisions surrounding supplier partnerships, distribution center
management, and the use of advanced manufacturing technologies when producing vehicles
(Jum’a et al., 2024). Economic downturns also impact strategic decision-making when it comes
to inventory replenishment (push boundary) (Chopra, 2018). Operational decision-making
encompasses logistics coordination, dealership management and operations, and methods to
mitigate production and profitability risks (Jum’a et al., 2024).
References
Chopra, S. (2018). Supply Chain Management (7th ed.). Pearson Education.
https://libertyonline.vitalsource.com/books/9780134732459
Jum’a, L., Qamardin, S., & Ikram, M. (2024). Developing resilience strategies amid supply chain
risks in the automotive industry: A stakeholder theory perspective. Business Strategy
and the Environment. https://doi.org/10.1002/bse.3977
Kechagias, E. P., Gayialis, S. P., Konstantakopoulos, G. D., & Papadopoulos, G. A. (2020). An
application of a Multi-Criteria approach for the development of a process reference
model for supply chain operations. Sustainability, 12(14), 5791.
https://doi.org/10.3390/su12145791
Kumar, A., Shrivastav, S. K., & Bhattacharyya, S. (2022). Measuring strategic fit using big data
analytics in the automotive supply chain: a data source triangulation-based research.
International Journal of Productivity and Performance Management, 72(10), 2977–2999.
https://doi.org/10.1108/ijppm-11-2021-0672
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Maddock-James, J. (2025). Supply-chain infrastructure as architecture: a case study of Amazon
in Darlington, UK. Mobilities, 1–16. https://doi.org/10.1080/17450101.2025.2477173
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