Quality in Supply Chain

Strategic Supply Chain Management

Chapter – 3 Lecture Notes

Supply Chain Drivers and Obstacles

Chapter # 3 Outline

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Drivers of supply chain performance

A framework for structuring drivers

Facilities

Inventory

Transportation

Information

Sourcing

Pricing

Obstacles to achieving fit

Supply Chain Drivers

To understand how a company can improve supply chain performance in terms of responsiveness and

efficiency, we must examine the logistical and cross functional drivers of supply chain performance.

Logistical Drivers are –

– Facilities

– Inventory

– Transportation

Cross functional Drivers are –

– Information

– Sourcing

– Pricing

Facilities

places where inventory is stored, assembled, or fabricated

production sites and storage sites

Inventory

raw materials, WIP, finished goods within a supply chain

inventory policies

Transportation

moving inventory from point to point in a supply chain

combinations of transportation modes and routes

Information

data and analysis regarding inventory, transportation, facilities throughout the supply chain

potentially the biggest driver of supply chain performance

Sourcing

functions a firm performs and functions that are outsourced

Pricing

Price associated with goods and services provided by a firm to the supply chain

A Framework for Structuring Drivers

Competitive Strategy

Supply Chain

Strategy

Efficiency

Supply Chain Structure

Responsiveness

Logistical Drivers

Facilities

Inventory

Transportation

Information

Sourcing

Pricing

Cross Functional Drivers

Framework for Structuring Drivers

-The goal of a supply chain strategy is to strike the balance between responsiveness and efficiency that

fits with the competitive strategy.

-To reach this goal, a company must structure the right combination of the three logistical and three

cross functional drivers.

-For each of the individual drivers, supply chain managers must make a...