Supply Chain Strategy: Designing Effective Supply Chains

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Author(s): Vivek Sehgal (GT Nexus, USA)
Copyright: 2015
Pages: 27
Source title: Optimization of Supply Chain Management in Contemporary Organizations
Source Author(s)/Editor(s): Ehap Sabri (JDA Software, USA & University of Texas at Dallas, USA)
DOI: 10.4018/978-1-4666-8228-3.ch002

Keywords: Business & Management / Business Science Reference / Management Science / Supply Chain Management

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Abstract

With global expansion and emerging business model complexities such as omni-channel for retail industry, corporations are under pressure to reinvent their supply chains. They fall into the old trap of following supply chain strategies of lean, agile, or postponement. These however are not strategies, but simply the goals of an effective supply chain: to reduce cost and variability, and optimize production. In contrast, a strategy should guide a corporation on how to reach these goals. The author argues that true supply chain strategy must be derived through an evaluation of capabilities to be built to realize the business goals of a corporation. To effectively create such a supply chain, corporations must further align their technology strategy to enable their supply chain capabilities. Only when the three, business, supply chain, and technology strategies, align can truly lean, responsive, and agile supply chains be enabled that create sustained competitive advantages.

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