Strategic supply chain design

In our next articles we will continue the discussions about the elaboration of a Supply Chain strategy to be a competitive company. Some favored consolidating manufacturing into one or two new mega-plants; others suggested closing existing plants or lines.

And after Nike Inc. Like any other management tool, however, both scenario planning and optimization modeling can have their downside. It is similar to a company taking a macro business scenario and creating micro scenarios for business units or regions.

In another case, a personal-computer manufacturer made successful strategic use of an optimization model for its global manufacturing and distribution network.

Still, the joint use of scenario planning and optimization models is the better road to shareholder value — more effective than using either approach in isolation.

It can soar, but it also needs to keep its feet on the ground. Used in this context, optimization models and APS technology help determine where and when to produce what items and how to distribute them.

Therefore, companies do not always have carefully developed alternatives for customer demand, new channels, competition, supply risks, and product development. How to design a competitive Supply Chain? Share through Email advertisement Any company that has a global supply chain should consider introducing its strategic left hand to its operational right hand.

How should companies ensure that relevant supply-chain details inform the business-strategy formulation and that strategic direction and the supply chain are in alignment? Doubleday, ; P. The Sunrise-Sunset scenario anticipated that events in western Europe and Japan would lead to a downturn in the U.

Contact him at m. Non-PVC polymer production would gain in importance. The optimum route to maximizing shareholder value is rarely obvious. Scenario Planning In Phase Two, the supply-chain team runs the model scenarios and makes scenario-specific recommendations.

Spreadsheet calculations or simulation models cannot provide that sort of benchmarking capability. Strategic Supply-Chain Planning Using Scenario Planning View Exhibit Strategic Supply-Chain Planning Using Scenario Planning The senior team, which uses brainstorming and other hard-to-measure approaches to formulate strategies that increase shareholder value, combines its strengths with those of supply-chain planners, who rely on optimization software to reduce supply-chain costs.

The only constraint is plausibility. Log in to download this paper. What Creates Real Economic Value? In Figure 2 we have presented the importance of the correlation between functional strategies Supply Chain, Marketing and Sales, etc.

What are the target markets? The creative input needed from managers differs too much from one company to another for experts to offer more than guidelines.

What capabilities are needed to assure that the company adds value and differentiates? Acme had been seeing revenue growth for several years, mostly as a result of acquiring other PVC manufacturers.

Design an Effective Logistics Strategy With This Guide to Maturity Principles

There are many managers that first think of the elaboration and monitoring of a set of key performance indicator, when they want to improve the performance of a Supply Chain. After the elaboration of the final form, the strategy will be communicated to the decision-making structures of the organization.Strategic supply-chain planning that combines aspects of business-strategy formulation with aspects of tactical supply-chain planning can make each far more valuable to.

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The cycle view of a supply chain is useful when considering operational decisions because it specifies the roles and responsibilities of each member of the supply chain. The push/pull view is useful when considering strategic decisions relating to supply chain design.

Supply Chain Strategy Development & Master Planning

01 - Strategic Supply Chain Design - Handouts - Free download as PDF File .pdf), Text File .txt) or read online for free. Strategic supply chain design - handouts.

Under the rubric of strategic sourcing, cultivate long-lasting supplier relationships, with high levels of cooperation, so all stages of the supply chain can be constantly improved.

How to design a competitive Supply Chain?

Indeed, continuous improvement should be an overall area of emphasis: Implement lean manufacturing techniques in all. Strategic Approach to Supply Chain Design and Management In this intensive, two-day, senior faculty-led program, we’ll explore issues that include.

The primary purpose of a supply chain network design is to assess company policies and programs and to meet targets to accomplish long‐term strategic objectives, and most business units or functional areas within a company are impacted by a network design project.

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Strategic supply chain design
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