Strategic Supply Chain Management - Supply Chain Online

CHAPTER 1 Core Discipline 1: View Your Supply Chain as a Strategic Asset 37
FIGURE 1–5
Next-generation characteristics of supply chain strategy.
Theme
Supply Chain
Strategy Scope
Supply Chain
Strategy
Content
Supply Chain
Support of
Overall
Business
Strategy
Supply Chain
Segmentation
Cross-
Enterprise
Extension
Current Dominant
Practice
Focus is on the internal
organization
Focus is on functional
excellence, with
corresponding
emphasis on functional
metrics such as unit
manufacturing costs
and purchasing price
variance
Supply chain strategy is
focused on core (plan,
source, make, deliver,
and return) capabilities
and performance
objectives
One supply chain
model (a set of supply
chain capabilities and
performance
objectives) is dominant,
with alternative
approaches managed
on an exception basis
External relationships
with customers and
suppliers are managed
using existing roles,
processes, and metrics
Next Generation
Dominant Practice
Focus is extended to key
customers and suppliers
Functional strategies are
integrated as part of the overall
supply chain strategy to
achieve enterprise-level
performance improvements in
areas such as supply chain
management costs, order
fulfillment lead time, on-time
delivery, and inventory days of
supply
Supply chain capabilities and
performance objectives are
aligned with marketing and
sales, technology, service, and
product development strategies
Multiple supply chain models
are developed and optimized
based on customer and
supplier segmentation
Effective external relationship
management is nurtured as a
core competency and enabled
by new roles, processes, and
metrics