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Achieving Strategic Fit and Scope

Learning Objectives

 Understand why achieving strategic fit is critical to a company’s overall success  Describe how a company achieve strategic fit between its supply chain strategy and its competitive strategy  Understand the importance of expanding the scope of strategic fit across the supply chain  Describe the major obstacles that must be overcome to manage a supply chain successfully

Competitive and Supply Chain Strategies

 Competitive strategy: defines the set of customer needs a firm seeks to satisfy through its products and services  Carrefour >< Alfamart  Customer needs  Customer priorities

The Value Chain: Linking Business and Supply Chain Strategy

Finance, Accounting, Information Technology, Human Resources New Product Development Marketing Operations and Sales



Core processes for a successful sale

Competitive and Supply Chain Strategies

 Product development strategy: specifies the portfolio of new products that the company will try to develop  Marketing and sales strategy: specifies how the market will be segmented and product positioned, priced, and promoted  Supply chain strategy: (Operation, Distribution, Service)

 Determines the nature of procurement of raw materials, transportation of materials, manufacture of product, distribution of product along with any follow up service

 Consistency and support between supply chain strategy, competitive strategy, and other functional strategies is important

Achieving Strategic Fit

 Strategic fit:

 Consistency between customer priorities of competitive strategy and supply chain capabilities specified by the supply chain strategy  Competitive and supply chain strategies have the same goals

 A company may fail because of a lack of strategic fit or because its processes and resources do not provide the capabilities to execute the desired strategy  Example of strategic fit -- Dell

How is Strategic Fit Achieved?

 Step 1:...