Supply Chain Minute - Strategy Compass

Описание: The Strategy Compass is downloadable here: www.supplychainmovement.com/strategy-compass-companies

Within the vast majority of companies there is a disconnect between the company strategy and their supply chains. A healthy company strategy always starts with customer needs and buying behaviours. And a successful company has clearly formulated its mission – its raison d’être and how it wants to add value for customers.

The mission can be translated into one of just three business strategies: Product Leadership (best product, focusing on quality), Operational Excellence (best overall costs, offering low price) or Customer Intimacy (best total solution, delivering highest service). The relevant strategy means that a company chooses between innovation, efficiency and flexibility, maintaining an acceptable minimum level for the other two aspects. This strategy can differ per product category, customer segment or product-market combination, especially in the case of large companies.

The 3 strategies are translates in six different types of supply chains, because one supply chain does not fit all. These types can are depending on which company department (R&D, sales, service, production, purchasing & logistics or marketing) is the most dominant.

A ground-breaking new product fits in the Product Leadership strategy. But at the end of its life cycle the Operational Excellence strategy, based on low costs, is the most apt.

The decision for a supply chain type affects the organizational structure in terms of the degree of (de)centralisation and employee autonomy. Furthermore, each type of supply chain should have its own processes and systems design. Last but not least, the key performance indicators (KPIs) should be aligned with the business strategy company-wide to ensure the desired employee behaviour.