supply chain 2000 word essay
jiafeng1
strategic_scm.pptLevel Two
Supply Chain Management
Strategic Supply Chain Management
Today......
- Supply chain in the wider context
- Strategic influences
- Effects of decisions on strategy and operations
Supply Chain In Context
- SCM goes beyond everyday operations.
- Essential to understand the wider context of SCM and the effect of decisions.
Economics – Supply and Demand
- Market Equilibrium
- Need to question how this fits with overall strategy
- How do changes in supply and demand impact out supply chains?
Decrease in Supply
- May be caused by:
- Reduced number of producers
- Increased production costs
- Forecasts and other data
- Increased raw material costs
- Political and wider economic impacts
Increase in Supply
- May be caused by:
- Increased number of producers
- Decreased production costs
- Forecasts
- Innovation
- Favourable production environment
Decrease in Demand
- May be caused by:
- Decreased number of consumers
- Changes (up or down) in income levels
- Price increases (complementary) or price decreases (substitute)
- Changes in preferences
- Future expectations
Increase in Demand
- May be caused by:
- Increased number of consumers
- Changes (up or down) in income levels
- Price increases (substitute) or price decreases (complementary)
- Changes in preferences
- Change in expectations e.g. shortages
SCM In Context - Strategy
- Strategy – how to achieve long term aim.
- Operations and SCM – shorter term, current situation.
- How do we go beyond the short term and become more aligned with overall strategy?
Moving beyond the short term
- Initial – Implementing business strategy
- Undertaking activities which will contribute to the organisation moving forward towards the strategic aim.
- Supporting – Supporting business strategy
- Innovating and developing tools, systems and capabilities.
- Leading – Driving business strategy
- Working on key and unique advantages/skills that see operations at the forefront of the organisations strategy.
Perspectives on Strategy
- Four themes of strategy in relation to operations.
- Sees strategy driven by various points and perspectives of the supply chain.
Top Down Strategy
- Comes from the hierarchy of organisation
- Role of operations is often implementing strategy.
- What impact does this have on decision making?
Bottom Up Strategy
- Strategy from experience
- Requires philosophy of continuous improvement
- Alignment with Japanese theories of SCM
Operational Resource Strategy
- Gained from sustainable competitive advantage of core competencies.
- Resource constraints and capabilities
- ‘What do we have and what can we do?’
- How does this link with our ideas of CI?
Market Requirements Strategy
- Strategy governed by market
- Competitive factors divided into order winners and order qualifiers
- Need to consider product lifecycle
Product Lifecycle and Operations Strategy
- Introduction
- Flexibility, quality
- Growth
- Speed, dependability, quality
- Maturity
- Cost, dependability
- Decline
- Cost
Operations Strategy Process
- When formulating we need to ensure that the strategy is:
- Comprehensive
- Coherent
- Corresponds to overall objective
- Able to identify the critical issue
Operations Strategy Process - Implementation
- How the strategy is actually going to be operationalised
- Important for successful implementation:
- Clarity of strategic directions
- Motivational leadership
- Project Management
Operations Strategy Process – Monitoring and Control
- Monitoring:
- Ongoing assessment of risk and progress.
- Realignment
- Control:
- Evaluation of results
- Communication issues with complex strategies.
Conclusions
- Supply chain and operations does not, and cannot sit in isolation.
- Decisions that we make can have huge impacts throughout the rest of the supply chain, organisation, and marketplace as a whole.
Today.....
- Supply chain in the wider context
- Strategic influences
- Effects of decisions on strategy and operations
