Aligning Supply Chain Strategy with Business Strategies

Introduction

In today's markets, the way companies and businesses operate and function is dictated by
the speed of goods movement in the market and their life-cycles as well. There has been a
marked shift from the traditional mass production practices. Businesses are increasingly
embroiled in the demand fluctuations and the uncertainties that it brings and high variability.
This situation has made the response from these businesses to the customers a very difficult task.
Companies have also adopted global sourcing approaches due to the increasing competition. This
has significantly added the number of firms or organizations that are involved in the supply
chain. This has led to increased complexity of the supply chain. companies are adopting practices
to manage supply chains and investigate the critical issues in the market when the company
implements the supply chain strategies to derive structure and competitive advantage.

A business strategy provides a strategic map plan helps the members to learn the
ingredients that are essential in positioning the business competitively. The team sharing the
vision understands the focal point of the business by covering the areas of critical importance to
the business. Supply chain management is regarded as an improvement of the supply chains
operated and run by businesses and corporations through the integration of the social, economic,
and environmental issues. A supply chain strategy provides a road map that ensures businesses
and companies get products to the clients with little or no friction. Essentially, it ensures that all
phases in the supply chain are optimized for resourcing materials, manufacturing, delivery and
transportation of goods and services.
Importance of supply chains strategy

The supply chain strategy is an integral component to the success of modern businesses.
These businesses define their strategy by creating channels through which an entity distributes its
products and services to the consumers. Alternatively, may opt to deliver the products and
services through the development of a supply chain system. In recent years, not only does the
efficiency of the supply chain determine the operational success of the business but also, they
require efficient management skills to enhance the performance of the supply chain. The
integration the strategies involves realigning firm's operating structures ensuring they get
understood from an internal-external perspective and process view. Theoretical supply chain
process integration draws from strategy structure performance, transaction cost economics, social
network, and resources based on a view of the firm.

Managing the demand for the consumers is an important factor in creating an effective
supply chain. It promotes the satisfaction of the customers' needs and disregards the production
process. As well, improved communication levels across all levels of the supply chain improve
the performance of the retail industry. It bolsters the connection between the stores, the
intermediaries, and the consumers. Such a relationship promotes understanding among members
of the supply chain concerning the customer's demand. Minimizing the costs of the supply chain
process also enhances the success of the retailers. This move is possible with the cohesion of all
activities within the supply chain.
Techniques of developing and executing a supply chain strategy

On top of attracting the interest of the corporate world, sustainable supply chain
management is largely based upon the techniques implemented in the overall supply chain. The
integration of sustainability into the supply chains of businesses. The main challenge for majority
of business has been adopting sustainability into the business supply chains and retaining the
financial gains and the social benefits to the workforce. However, for this to be sustained
companies need to focus on customer-centricity, predictive maintenance, automation, and
visibility. Incorporating these strategies will enable businesses to meet customer demand and
boost profitability. On occasions, the adoption of sustainability into the supply chain of a
company or a business lead to the decline in one or both of the other aspects of the business in
social and financial aspects. Such decline makes the sustainable supply chain management a
challenging and daunting prospect. With the advent and spread of globalization, the supply
chains systems expanded massively, and the need to produce and the demand for such goods
grew. This negates the adoption of quantity and quality with regards for the environment.

Supply chain comprises of the goods and information flow and transformation from the
raw materials to the finished products that the end user can purchase for consumption. Over the
last two decades, businesses have adopted the optimization programs that cover entire supply
chains rather than some facilities or organizations. Sustainability in SCM focuses on the design
of products, the manufacture of end-products, and the by-products that are produced after the use
of the main products of the company. Other aspects that are considered include the life extension
of the product, the end-of-life of the product, and the recovery process of the product at its end-
of-life. All these activities are integrated alongside the core activities of the business or the
company.
Sustainable Supply Chain Management (SSCM) Needs

The design of an SSCM should be tailored for specific businesses. This will depend on
the type of products the business deals with and the type of supply chain that is in operation.
With such a background, the company can then design an SSCM that will take into consideration
the economic condition of the business, environmental and social customer needs for the
business. supply chains have the potential to influence future policies adopted by governments. It
can also influence the present production operations and unearth new business models. This is
manifested in the new approaches and models that businesses in the private and public sector are
adopting today. It shows a realization that SSCM is the way of the future. The world is ready and
wants SSCM. Businesses that have not complied or are not in the process of complying can
easily be swept out of the way. This can happen as the sustainability concept gains tract with the
general public that form a lion's share of the customer or consumer base.

Importance of connecting supply chain strategy with business strategy.

Companies utilize various business techniques to create sustainability and value for their
businesses. supply chain management is crucial for the businesses to be profitable and maintain
the brand equity. One of the strategies involves understanding their target and potential
consumers. From personal experiences, having knowledge of the clients can enable an entity to
understand the needs and behavior of the consumers. In customer relations service firms do not
produce services unless customers require it. They, however, develop and design a scope and
contents of services in advance of orders. Manufacturers can, however, produce goods without
order or forecast of customer demands. Production of goods should meet market needs. For this
reason, they can provide goods and services that satisfy their requirements. Second, the quality
of delivery improves the efficiency of the business. Business need to establishing policies that
guarantee the provision of high-quality commodities, which grants a competitive edge in the
market. Finally, supply chain strategies are employing the partnership strategy to complement
their growth and expansion goals. Collaboration also facilitates a smooth penetration into foreign
market. Location competes to be testing grounds for new products. Firms need to ensure they
overcome exposure to foreign currency fluctuations whereby contributor factory enables
companies to get involved in product development, production planning, procurement decisions
and developing suppliers. The strategy supplies specific national or regional markets.
 Conclusion

An efficient supply chain management improves the operational success of the business.
It enables the organizations to organize, plan, and control the production and distribution of
products and services to the consumers. Similarly, understanding the global market forces such
as economic downturn, competition, and fluctuating exchange rates enable the retail traders to
formulate effective supply chains strategies. Such promote the strategic implementation of the
goals set by the organization when it comes to the operational success of the business.

Supply chain management is control over integrated network process, providing

consumers with products or service as well as meeting his or her requirements. It includes
numerous aspects of logistics management and demand planning. In the integration processes of
supply chain management is on the flow of goods, information and resource get managed from
the beginning to the point of consumption and reverse. The process of locating, obtaining and
transporting inputs needed to attain the desired goal is the core function of supply management.
Both service and manufacturing firms require the input of labor in satisfying the processing of
end product or services to the customer. In achieving superior performance, basic supply chain
capabilities get developed with proper understanding. Supply chain management involves
collaborative work with the buyers and suppliers, conventional systems and shared information.