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Supply Chain Management (3rd Edition) : Supply Chain Performance: Achieving Strategic Fit and Scope
Supply Chain Management (3rd Edition) : Supply Chain Performance: Achieving Strategic Fit and Scope
Outline
Competitive and supply chain strategies Achieving strategic fit Expanding strategic scope
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Finance, Accounting, Information Technology, Human Resources New Product Development Marketing and Operations Sales
Distribution
Service
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A company may fail because of a lack of strategic fit or because its processes and resources do not provide the capabilities to execute the desired strategy Example of strategic fit -- Dell
2007 Pearson Education 2-7
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Variety of products required increases Demand per product becomes more disaggregated
Salt at a supermarket
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Correlation Between Implied Demand Uncertainty and Other Attributes (Table 2.2)
Attribute Product margin Low Implied Uncertainty Low High Implied Uncertainty High
10%
1%-2%
40%-100%
10%-40%
10%-25%
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Low
Cost
High
2007 Pearson Education
Low
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Highly efficient
Somewhat efficient
Somewhat responsive
Highly responsive
Hanes apparel
Dell
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Responsiveness spectrum
Uncertain demand
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Responsive
Quick response Modularity to allow postponement Higher margins Capacity flexibility Buffer inventory Aggressively reduce even if costs are significant Speed, flexibility, quality Greater reliance on responsive (fast) modes
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Five categories:
Intracompany intraoperation scope Intracompany intrafunctional scope Intracompany interfunctional scope Intercompany interfunctional scope Flexible interfunctional scope
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Retailer
Customer
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