Aligning Strategic Supply Chain Management and Corporate Strategy Flashcards
Relationship between the different levels of strategy and supply chains contribution
What contribution does supply chain management have on the corporate business strategy?
total quality management waste and cost reduction risk management supply chain flexibility innovation
Define supply chain management
Christopher -
“supply chain management is the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole”
Grant, Lambert, Stock, Ellram -
“the integration of business processes from end users through original suppliers, that provides products, services and information that add value for customers”
What is the difference between Strategic Supply Chain Management and Operational Supply Chain Management
operational SCM is focusing on the day to day requests from internal stakeholders with a strong focus on quality and cost.
SSCM has a higher status and integration with the organisation
Define strategy
Johnson, Scholars and Whittington -
“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”
How do you achieve competitive advantage?
Porter’s -
cost leadership
differentiation
focus
what are the levels of alignment within an organisation?
Mission Vision Values Goals Objectives Strategies
what will supply chain strategies look to achieve?
cost reduction efficient use of resources quality improvement service enhancement Innovation from the supply chain efficient delivery regulatory compliance risk mitigation
how can supply chain help achieve competitive advantage?
reduced cost improved quality product and service differentiation profitability reduce cycle times improve cash flow continuous improvement improving responsiveness to customers effective management of supply chain risks
How can SSCM support an increase in profitability
Realising revenue benefits - enhanced availability, increase average revenue per unit sold (helped by improving quality, new product development, increase service levels, enhanced value)
Reduce operating costs - efficiency, waste, optimising
= Increased profitability
how do you develop a strategy to reduce operating costs?
1 - understand the drivers for reducing cost
2 - understand why excess costs exist in the SC
3 - focus and prioritise cost down initiatives
4 - develop appropriate strategies and tactics
5 - review and measure performance
what strategies can be implemented to reduce cost?
restructuring process re-engineering develop collaborative relationships apply ICT and automation rationalise supply base lean supply and production global and low cost country sourcing outsourcing non core activities
what are the 4 types of outsourced arrangements
1 - business process outsourcing
2 - facilities management
3 - original design manufacturing
4 - managed services
what are the 3 types of competence in strategic supply chain management? (Cox)
1 - core competences (competitive advantage, not easily replicated - merger/acquisitions, in-house)
2 - complementary competences (complement core, help deliver value, Preferred supplier relationship, single source, network sourcing)
3 - residual competences (lower importance, easily replicated - market based procurement)
What are the 3 types of internationalisation that can be used to achieve competitive advantage
Offshoring - business process taken overseas
International and global sourcing - sourcing goods from overseas
Low-cost country sourcing - sourcing from less developed countries
What tool can you use to assess the the Macro & Micro environment?
Macro (factors that affect many different industries) - STEEPLE/SWOT
Micro (factors that affect org/sector inc competitors) - Porter’s 5 forces/SWOT
