SUPCH 2

Operational Effectiveness (OE)

Performing similar activities better than rivals perform them.

Business Strategy

Creating a sustainable competitive advantage by delivering a unique mix of value.

Strategic Positioning

Performing different activities from rivals, or performing similar activities in different ways.

Order Qualifiers

Minimum level of performance expected by customers to be considered.

Order Winners

Performance dimensions that differentiate a company’s products and services from its competitors.

Value Disciplines

Framework that includes Product Leadership, Operational Excellence, and Customer Intimacy.

Push System

Inventory is produced in advance based on forecasts.

Pull System

Inventory is produced based on actual customer orders.

Decoupling Points

Stages in a supply chain where the product is held until a customer order is received.

Product Leadership

Strategy focused on innovation and bringing superior products to market.

Operational Excellence

Accomplishing cost leadership through streamlined operations and high-volume production.

Customer Intimacy

Offering personalized services to meet individual customer needs.

Product Dimensions

Characteristics that define the total product offering, including fixed, expressive, and variable elements.

Value Frontier

The trade-off between cost and value for products within a competitive environment.

Functional Strategy

Specific directions derived from business strategy to guide operational decisions.