(1, 1) Strategic Supply Chain Management and Corporate Strategy Flashcards
What is supply chain management?
Supply chains start upstream with the raw materials and end downstream with the customer. SCM involves the management of the relationship between each of the parties in the supply chain, in order to achieve value for them all.
What is operationally focused supply chain management?
Operational SCM is focused on reacting to requests from stakeholders with a strong focus on quality and cost. This is unlikely to be integrated with the organisation.
What does strategy mean?
The direction and scope of an organisation over the long term which achieves advantage in a changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations.
What 3 levels in an organisation does strategy exist at?
Functional - considers the way in which part of the organisation will deliver and support corporate and business unit strategies.
Business Unit - may be divided by geographical location, customer, product, brand or market etc.
Corporate - consider the whole organisation often incorporated into the organisations mission statement and vision.
What is the top down alignment of strategies in an organisation? Start with the leading level and work through.
Mission - a statement is made to communicate the purpose of the organisation
Vision - provides a long term view of where the organisation wants to be
Values - core qualities and beliefs valued by the organisation used to steer conduct of organisation and employees
Goals - explain how an organisation intends to achieve it’s mission
Objectives - these are more precise aims of what needs to be achieved over a given time period, these are more specific and designed to be measured
Strategies.
What tool can be used to achieve strategic alignment?
McKinseys 7s framework. Strategy Structure Systems Skills Staff Style Shared Vision (Centre of framework)
What other elements other than achieving cost reductions and efficient use of resources might a supply chain strategy include?
Quality Improvement Service Enhancement Innovation from the Supply Chain Efficient Delivery Regulatory Compliance Risk Mitigation
Corporate and supply chain strategy should address and mitigate risks. What types of risks might be mitigated?
Compliance Risk Supply Risk Reputational Risk Market Risk Economic or Financial Risk Demand Risk Technological Risk Operational Risk Environmental Risk
How can corporate and supply chain strategy contribute to sources of competitive advantage?
Reduced costs, improved quality Product and service differentiation Profitability Reduced cycle times Improved cash flow Continuous improvement Improving responsiveness to customer requirements Effective management of supply chain risks
One major contribution strategic supply chain management can make to support an organisations overall success is to increase supply chain profitability. How can this be achieved?
Realising revenue benefits - increase supplier service levels and deliver enhanced value to end customers
Reducing operating costs - through enhanced availability or increasing the average revenue per unit sold through increased pricing
Increased profitability
What 5 elements will a strategy to reduce costs have?
- Understanding the drivers for reducing costs
- Understanding why excess cost exists in the supply chain
- Focusing on prioritising cost-down initiatives
- Developing appropriate strategies and tactics
- Reviewing and measuring performance
What strategies and tactics might be used to reduce costs?
Restructuring Process re-engineering Developing collaborative relationships Applying ICT and automation technologies Realising the supplier base Developing lean supply and production Investigating the potential for global and low-cost country sourcing Outsourcing non-core activities
What are the 4 types of outsources arrangements?
Business process outsourcing
Facilities management
Original Design Manufacturing (ODM) (outsourcing entire manufacturing process but buyer keeps design)
Managed Service
What are the three types of competencies and organisation may have?
Core competencies
Complementary competencies
Residual competencies
What is the Accenture strategy framework which related to an organisational competencies?
It considers “Market view of capability’s strategic advantage” against “Capability’s contribution to profit or shareholder value”.
Low, Low: Outsource
High, Low: Leverage
Low, High: Harvest, capabilities should be phased out
High, High: Insource
