The document outlines 6 key obstacles to achieving strategic fit within a company's supply chain: 1) increasing variety of customized products, 2) decreasing product life cycles, 3) increasingly demanding customers, 4) fragmentation of supply chain ownership, 5) globalization adding coordination difficulties, and 6) difficulty executing new strategies once formulated. Overcoming these obstacles presents opportunities for untapped improvements, as supply chain management has become major to firms' success or failure due to obstacles' increasing impact.
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
Channel Information Systems
Purpose
Information - Advantages
Classification of Information
Information Process
Developing a Channel MIS
Use of Information
Sources of Data
Competition Tracking
Elements of a Channel Information System
Channel Performance Evaluation
IT System for Channels
Intensive Distribution
Channel Information Systems
Purpose
Information - Advantages
Classification of Information
Information Process
Developing a Channel MIS
Use of Information
Sources of Data
Competition Tracking
Elements of a Channel Information System
Channel Performance Evaluation
IT System for Channels
Intensive Distribution
WPC 480. Week 81For next week…Complete Case Pap.docxMARRY7
WPC 480.
Week 8
1
For next week…
Complete Case Paper #3 on Aldi
Due at our next class March 19th
Focused on Cost Leadership and Differentiation Strategies.
NO Blue Ocean!
NO Business Models
Focus on Chapter
(After tonight – it’s Spring Break)
2
Generic Business Strategies
Differentiation
Seeks to create higher value than competitors
Offers products or services with unique features
Keeps the firm’s cost structure as low as possible
Charges higher prices
Cost Leadership
Seeks to create similar value as competitors
Products or services delivered at lower cost
Charges lower prices
Business-level Strategies
Cost leadership
Sources of keeping costs down and prices low
Cost of input factors (supplier power matters here)
Economies of scale
Employing specialized systems and equipment
Minimum efficient scale – increases in volume do not lead to further cost reductions
Implies large market share almost always to get the best economies of scale
8
Cost leadership:
It takes time to reduce costs
Learning Curve Effects – price drops (and quality increases) as volume increases over time
Versus Economy of Scales: Economy of Scales are a specific points in time versus accumulation over time
Differences in Complexity: Depending on product/service EoS may have stronger impacts than learning curves
Experience Curve Effects – price drops (and quality increases) with changes in technology of production
Process Innovation: changes in technology allow increased efficiency with same output volume.
Technology can be changes in methods or machinery
9
Attributes of the Product/Service offering
Relationships between company and consumers
Linkages within or between firms
Differentiation Strategy
Blue Ocean Strategy
Value Innovation: Aligning consumer utility, price and cost for maximizing value to company and consumer – product differentiation and low cost.
8
Blue Ocean Strategy
Strategy Canvas: Captures current state of the known market place and action framework to explore alternatives.
9
Blue Ocean Strategy
4 Action Framework: To assist in creating a new value curve the 4 Action Framework helps evaluate the tradeoffs between differentiation and cost.
10
Blue Ocean Strategy
11
Blue Ocean Shift
12
Activity
In your group, identify a company who has a Blue Ocean strategy
Identify that BO company’s competitors or industry
Identify the factors that consumers use to make decisions about their purchases with this company.
What factors were raised/created by the BO company or eliminated/decreased?
13
Risks of Blue Ocean
Finding the right blue ocean – easy to say but hard to find/create
Arriving too early and/or Being too new, too different – are consumers ready?
Strategy Execution – Right leaders?
Strategic Clarity and Mindset – ready for the challenges from top to bottom
Trust and Patience
How defensible is your new ocean?
14
Blue Ocean vs. Yoda
15
Tradeoffs
Maintain a focus on the cons ...
Clarifying Strategic Positioning: An RBL ApproachThe RBL Group
As we work with clients to help them position for customer advantage, we focus on creating alignment on two levels: Enterprise Strategy and Business Strategy.
Time to Tell Your CPOs to Collaborate with SuppliersMelih ÖZCANLI
Time to Tell Your CPOs to Collaborate with Suppliers
Companies want value, and they want their chief procurement officers (CPOs) to deliver it. How can CPOs get the job done? By identifying and then collaborating with their key suppliers.
2012, A.T. Kearney, Inc. All rights reserved.
Mike Hales, partner, Chicago mike.hales@atkearney.com
Hendrik Disteldorf, principal, New York hendrik.disteldorf@atkearney.com
Oliver Zeranski, principal, New York oliver.zeranski@atkearney.com

Scoring High on the Supply Chain Maturity Modelaconris
This is my presentation from CSCMP Europe 2007 conference. Discover how leading practices are being used to transform supply chain performance by attending this session on the Global Value Chain Study. This study, undertaken by IBM Global Business Services in conjunction with APQC, identifies current practices, captures significant trends and establishes operational performance benchmarks in several key areas of Supply Chain Management: New Product Development, Planning, Procurement, and Logistics. By analyzing responses from
companies across a range of industries, in multiple geographies worldwide, it provides unique insight into challenges and demonstrates how supply chain management is changing from a static and cost-centric function to an evolving, integrated business model.
Similar to Obstacles to achieving strategic fit (20)
2. Achieving strategic fit is a company’s ability to find a balance between responsiveness and efficiency that matches the needs of its target customers.
4. Decreasing product life cycles Today there are products whose life cycles can be measured in months ,compared to the old standard of years.
5. Increasingly demanding customers Customers are constantly demanding improvements in delivery lead times, cost and product performance.
6. Fragmentation of supply chain ownership Most firms have become less vertically integrated. as companies have shed noncore functions, they have been able to take advantage of suppliers & customer competencies that they themselves did not have.
7. Globalization Adds stress to the chain, because facilities within the chain are farther apart, making coordination much more difficult.
8. Difficulty in executing new strategies Once the good strategy is formulated , the execution of the strategy can be more difficult
9. To conclude… Overcoming these obstacles offers a tremendous opportunity in terms of untapped improvement with in supply chain. the increasing impact of obstacles has led to supply chain management becoming a major factor in the success or failure of firms.
10. “When obstacles arise, you change your direction to reach your goal;you do not change your decision to get there.” THANK YOU…