P319 Strategic Fit

Interdependent

Buy, make, and sell are ________.

Integration

______ of processes and data enables collaboration to reduce lead times, pool demand, smooth demand, and innovate.

Competitive strategy

The set of customer needs a company seeks to satisfy through its products and services. All functional strategies must support one another and this strategy, so product, marketing, and supply chain.

Supply chain strategy

Determines the nature of material procurement, transportation of materials, manufacture of product or creation of services, distribution of product, follow-up service, whether processes will be in-house or oursourced.

Strategic fit

Competitive and supply chain strategies have aligned goals.

Neglecting value added

What is the biggest threat to any business and creates a window of opportunity for competitors. This is determined by the customer.

Understanding demand, supply, and identifying gaps and opportunities.

What are the 3 objectives to how strategic fit is acheived?

1 size fits all

A strategy that does not work, as many firms within the same industry have different strategies and thus different supply chains.

Segmentation

Achieves strategic fit while serving many customer segments with a variety of products across multiple chanels. Requires sharing operations for some links in the supply chain, while having seperate operations for other links.

Uncertainty

Reducing ________ helps supply chain managers more efficiently and effectively balance supply and demand as well as match supply chain capabilities to corporate strategy requirements.

Capacity, inventory, time, information, price

What are the 5 key levers to manage supply chain uncertainty

Supply chain responsiveness

The ability to respond to wide ranges of quantities demanded, meet short lead times, handle a large variety of products, build highly innovative products

Variety

Higher volumes enable cheaper production costs, but the tradeoff is less ______.

Push

Prepares capacity and inventory and can be very efficient when correct, so great strategy for products with less uncertainty.

Pull

Strategy that is responsive production process, so kanban, 2 bin, of VMI for example.