Supply Chain Performance

Ch 2
Overview
 Competitive and Supply Chain
Strategies

 Achieving Strategic Fit

 Expanding Strategic Scope

 Competitive and Supply Chain
Strategies
 Competitive strategy
Company’s competitive strategy defines the set
of customer needs that it seeks to satisfy
through its products and services
 Based on customers priorities
 Value chain defines the relationship b/w
competitive and supply chain strategies
 A company’s value chain identifies the primary
activities that create value for customers and the
related support activities
 Fig 2.1
Achieving Strategic Fit

 Strategic Fit means that both the

competitive and supply chain strategies
have aligned goals
 How is Strategic Fit Achieved?

1. Understanding the customer and supply chain

uncertainty
2. Understanding the Supply Chain Capabilities
3. Achieving Strategic Fit
Understanding the customer
and supply chain uncertainty
 Customer Demand in Different
Segments vary along several Attributes
 Implied Demand Uncertainty
 Table 2.1
 Table 2.2
 Table 2.3
 Figure 2.2
Understanding the Supply Chain
Capabilities
 Creating strategic fit is all about creating a
supply chain strategy that best meets
demand that a company has targeted given
the uncertainty it faces
 Supply Chain Characteristics can be
categorized in
 Supply Chain Responsiveness
 Supply Chain Efficiency
 Fig 2.3
 Fig 2.4
Achieving Strategic Fit
 Fig 2.5
 Zone of strategic fit
 The greater the implied uncertainty the
more responsive the supply chain should
be
 Fig 2.6
 Table 2.4
Other issues affecting
Strategic Fit
 Multiple products and Customer
Segments

 Product Life Cycle

 Competitive changes over time

Reading Assignment
 Expanding Strategic Scope