Achieving Strategic Fit and Scope
Achieving Strategic Fit and Scope
OUTLINE
Competitive and supply chain strategies
Achieving strategic fit
Expanding strategic scope
Major challenges that must be overcome to
manage supply chain successfully
Marketing
and
Operations Distribution
Sales
Service
Product margin
Low Implied
Uncertainty
Eg. Salt
Low
High Implied
Uncertainty
Eg. Mobile
High
10%
40%-100%
1%-2%
10%-40%
10%-25%
High
Low
High
Low
Cost
Responsive
Primary goal
Lowest cost
Quick response
Modularity to allow
postponement
Pricing strategy
Lower margins
Higher margins
Mfg strategy
High utilization
Capacity flexibility
Inventory strategy
Minimize inventory
Buffer inventory
Transportation strategy
Greater reliance on
responsive (fast) modes
Five categories:
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