Strategy and Planning

Ritesh Bansal
MBA- (Logistics and
Supply Chain
Management)
U.P.E.S.-Dehradun

11/04/2021
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 STRATEGY ----PLANNING

 A strategy is a plan of action designed to achieve

a particular goal.
 Planning is process of creating and maintaining a
plan; and designing the activities required to
achieve a desired goal on some scale.

 Strategic planning is an organization's process of

defining its strategy, or direction, and making
decisions on allocating its resources to pursue this
strategy, including its capital and people.
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 Existence and role in scm

 Decision phases in a supply chain

1. Supply chain strategy or design

2. Supply chain planning

3. Supply chain operations

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 Supply chain strategy
 How to structure the supply chain over next several
years
 What the chain’s configuration will be
 How resource will be allocated
 What processes each stage will perform

Examples-
 Whether to outsource or perform in-house supply
chain functions
 Location and capacities of production and ware-
housing facilities
 Mode of transtportation along different shipping legs
 Type of information system to be utilized

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 In SCM planning activities--
 set goals
 optimize and schedule time,
materials, and other resources
 Demand planning and forecasting
 Safety stock planning
 Supply network planning
 Distribution planning
 Inventory planning
 Material planning
 Operational planning

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 Basic difference
 Strategy refers to long term decisions- (given
marketing and pricing plans for a product)
 Planning – In this decision phase time frame
considered is quarter to year , therefore supply
chain’s configuration determined in strategic phase is
fixed.
So Strategy establishes constraints within which
planning must be done.

 Operations- time horizon is weekly or daily and

already strategy is fixed within defined planning
policies. Goal is to handle incoming customer order
in best possible manner.
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 References:
 www. Wikipedia.com
 Supply chain management –Sunil Chopra,
D.V. kalra

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