A CASE STUDY ON

EXPANDING
STRATEGIC SCOPE
WITH REAL-LIFE
EXAMPLE 1
 Group 03
Name Id Name Id
Sayed Nafis Kamal 2235276660 Rasel Mahmud 2115390690

Md. Sadrul Rahman 2225443660 Arefun Nahar

2016350060
Pushon
Mohammad Abid Md. Muzammel
2215323660 2225410660
Miah Hossain

2
 EXPANDING STRATEGIC
SCOPE
Scope of Strategic Fit

 Identifying Opportunities to Optimize the Entire Supply Chain,

Rather than Just Individual Functions.
 One Extreme: Each Function at Each Stage Develops Its Own
Strategy.
 Other Extreme: All Functions in all Stages Devise a Strategy Jointly.

3
 INTRAFUNCTIONAL SCOPE:
MINIMIZING FUNCTIONAL COST
 Aligning All Operations with in a Function.
 Attempt to Maximize Performance for the Entire Function.
 Minimization of Functional Cost.
 By taking an Intrafunctional approach and focusing on specific
functions within the supply chain, companies can identify and
address inefficiencies, reduce costs, and improve overall
efficiency and profitability.

4
 EXAMPLE
 Using Inventory Management Software to Accurately Track Inventory Levels and Demand
Patterns.
 Based on this Data, the Company can Adjust Their Ordering and Production Schedules to
Avoid Excess Inventory Buildup.
 By Minimizing Excess Inventory, the Company can Reduce the Costs Associated with
Warehousing, Handling, and Potential Obsolescence of Unsold Products.
 The Company can Achieve Significant Cost Savings while still Meeting Customer Demand
and Maintaining Production Schedules.

5
INTERFUNCTION
AL SCOPE
Maximizing Company Profit 6
INTERFUNCTIONAL
MISALIGNMENT

7
 INTERFUNCTIONAL
ALIGNMENT OF GOAL

8
 HOW TO ACHIEVE IT?
 Develop a shared vision
 Encourage collaboration
 Align incentives
 Measure and monitor progress

9
INTERCOMPANY
SCOPE:
MAXIMIZING
THE SUPPLY
CHAIN SURPLUS

10
 SUPPLY CHAIN SURPLUS

Total value of final

product / Total cost
incurred

11
 CONFLICT OF INTEREST

Sectional profit
maximization tendency

12
INTERCOMPANY SCOPE

Collaboration

13
 Collaborative Planning, Forecasting, and
Replenishment (CPFR)
 Vendor Managed Inventory (VMI)
 Product co-development

14
 AGILE INTERCOMPANY SCOPE

• Agile intercompany scope refers to a firms ability to achieve strategic fit

when partnering with supply chain stages that change over time.

15
• Strategic fit – competitive and supply chain strategies have aligned goals. 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
• The competitive strategy and all functional strategies must fit together to form a coordinated
overall strategy.
• The different functions in a company must appropriately structure their processes and resources to
be able to execute these strategies successfully.
• The design of the overall supply chain and the role of each stage must be aligned to support the
supply chain strategy.
• Scope Management in Agile Projects
• Items with the highest level of priority, a solid work breakdown structure, and a clear context
make up the scope for an iteration
• Key Points :
• Understanding the customer and supply chain uncertainty
• Understanding the supply chain
• Achieving strategic fit

16
 INTRAFUNTIONAL SCOPE IN
REAL LIFE • 23 Service Centers
Ground Ops • 121 associates

• 4 different units
Import
Ops • 35 associates

• National Operations for Export • 2 HUBs

Ops • 29 associates
concentrated efforts
• 241 associates

CPZ • 25 associates

Cage • 31 associates

17
 INTERFUNTIONAL SCOPE IN
REAL LIFE

• Operations & Sales with contradictory interests

• A committee of 3 people to align different interests for the betterment
of the organization and maximize profit

18
INTERCOMPANY SCOPE: MAXIMIZING SUPPLY CHAIN SURPLUS
• Walmart and P&G have been working together for more than 30 years, and the VMI initiative was
launched in 1984.
• Initially, the VMI system covered just a few products, but over time it has expanded to include
thousands of items.
• According to a study by the University of Tennessee, the VMI system has helped Walmart reduce
inventory carrying costs by 17-20% and increase sales by 10-15%.
• P&G estimates that the VMI system has helped it reduce its inventory levels by 15-20% and increase
its on-shelf availability by 5-10%.
• Walmart and P&G have expanded the VMI system to cover more than 4,600 stores and 300 suppliers.
• In 2018, P&G reported that its partnership with Walmart helped it save $1.3 billion in supply chain
costs.
 In addition to the financial benefits, the VMI system has also had positive environmental impacts. By
reducing the amount of excess inventory in its distribution centers and stores, Walmart has been able
to minimize waste and reduce its carbon footprint. P&G has also been able to optimize its
transportation network, resulting in fewer trucks on the road and lower greenhouse gas emissions

19
AGILE INTERCOMPANY SCOPE
• In 2016, Nike's third-party manufacturer, Yue Yuen, faced labor strikes and production delays,
resulting in a backlog of orders and a significant supply chain disruption for Nike. The company's
revenue declined by 2% in the following quarter, and its stock price fell by 7%.
• To address these issues, Nike partnered with Flex, a supply chain solutions company, to implement a
more agile and responsive manufacturing process. Flex helped Nike to establish new production lines
in Vietnam and Mexico, enabling the company to diversify its supply chain and reduce its dependence
on a single manufacturer.
• By working together, Nike and Flex were able to reduce the time-to-market for new products by up to
50%, optimize inventory levels, and improve production efficiency. For example, Nike was able to
increase the production of its Flyknit shoes by 30%, thanks to a new automated manufacturing
process developed in collaboration with Flex.
• As a result of these improvements, Nike was able to overcome its supply chain challenges and regain
market share. The company's stock price rose by 33% in 2017, and its revenue increased by 6% in the
following year. Nike also launched new products, such as the Nike React shoe, which quickly became
a top-selling item for the company.
• The collaboration between Nike and Flex also had wider benefits for the industry as a whole. The two
companies shared their learnings with other manufacturers and suppliers, promoting best practices
and driving innovation across the supply chain. For example, Nike and Flex launched an open
innovation challenge in 2017, inviting other companies to submit ideas for improving sustainable
20
manufacturing processes.
THANK YOU
21
QUESTION & ANSWER TIME

Q & A
22