Supply Chain Strategy: The Importance Of Aligning Your Strategies

Topics:
Sourcing,
Strategic Management Tools,
Strategy Formulation
Tags:
Chances,
Enterprise Software,
Software,
Strategy,
Supply Chain,
Supply Chain Management (SCM),
Supply Chain Strategy
Source:
United Parcel Service of America

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Overview: Chances are you've heard the term supply chain strategy. Used informally, it is often confused with supply chain management, where supply chain operations controlled to reduce costs. There's some truth to this definition, but supply chain strategy really is broader; it defines how the supply chain should operate in order to compete. Supply chain strategy is an iterative process that evaluates the cost-benefit trade-offs of operational components. Business strategy involves leveraging the core competencies of the organization to achieve a defined high-level goal or objective. While the business strategy constitutes the overall direction that an organization wishes to go, the supply chain strategy constitutes the actual operations of that organization and the extended supply chain to meet a specific supply chain objective.

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Format: PDF | Size: 149KB | Date: Jun 2005 | Pages: 7

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