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Understanding Strategic Fit
Strategic fit refers to the alignment between the competitive strategy of a company and its supply chain strategy (Contador et al., 2021). It involves ensuring that the capabilities and processes of the supply chain can support and complement the overall business strategy. The goal is to create a seamless integration where each component of the supply chain enhances the other, which should contribute to the competitive advantage and profitability of the company. A strategic fit enables the company to be more efficient in terms of managing costs, ensuring customer satisfaction, and staying ahead of competitors.
Push/Pull Processes
The concepts of push and pull in supply chain management refer to the underlying operational processes. Push processes are also known as "make to stock," and involve producing goods based on demand forecasts before actual purchase orders from customers are received (Van Donk, 2001). With this approach, the risk of overproduction or stock-outs is managed through accurate demand forecasting. Pull processes, on the other hand, are known as "make to order," and involve producing goods only after receiving a customer's order (Van Donk, 2001). This approach reduces the risk of overproduction but requires a responsive and flexible production process to meet customer demands quickly.
A combination of push and pull processes is typically used in a push-pull boundary or decoupling point. It is an approach in which push processes for the upstream supply chain and pull processes for the downstream supply chain are implemented so...…ensure strategic fit, a company must first clearly define its competitive strategy and understand its customers' needs. The supply chain strategy must then be designed to support this competitive strategy. For example, if the competitive strategy is to provide a wide range of products quickly, the supply chain should be designed for high responsiveness, which might involve an agile approach and pull processes. The company must also understand the level of implied uncertainty in its supply chain (from demand and supply variations), and align its supply chain capabilities to handle this uncertainty. This involves making trade-offs between responsiveness and efficiency based on the level of uncertainty. Lastly, the strategic fit should be reviewed and adjusted over time as market conditions, customer needs,…
References
Christopher, M., Lowson, R., & Peck, H. (2004). Creating agile supply chains in the fashionindustry. International Journal of Retail & Distribution Management, 32(8), 367-376.
Contador, J. C., Satyro, W. C., Contador, J. L., & Spinola, M. D. M. (2021). Taxonomy oforganizational alignment: implications for data-driven sustainable performance of firms and supply chains. Journal of Enterprise Information Management, 34(1), 343-364.
Van Donk, D. P. (2001). Make to stock or make to order: The decoupling point in the foodprocessing industries. International Journal of Production Economics, 69(3), 297-306.
Supply Chain There are several different attributes of supply chain management. Among them, some stand out as being more important than other. Key aspects of supply chain management include technology, communication/coordination, inventory control and bargaining power (EAUC, 2014). Bargaining power is important because it dictates the terms and conditions of the supply chain. If the buyer has more bargaining than the seller, then the terms will reflect more on the needs of
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply chain management (SCM) is a method for alleviating the way one company finds the raw materials and other components that it requires to produce a product or service and provide it to its customers. The five basic components of Supply Chain Management are planning, source, making, delivering and return. If supply chain standards are applied then the supply chain management could benefit from it a great deal and it
Supply Chain Management at DIMCO The supply chain relates to the entire cycle and process through which raw materials are purchased, processed and developed in to goods and services which can be traded in the market. The management of such a process would involve creating improvements in the supply chain itself to make it more profitable and efficient for the company (Davis, 1993). Therefore the supply chain encompasses not only raw
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Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands