The document discusses developing an integrated supply chain strategy. It emphasizes starting with an assessment of customer requirements and internal capabilities to identify gaps. Key areas that often need improvement include product complexity, inventory management, product development processes not considering supply chain, demand/supply balancing, and network design. The strategy also needs to consider major supply chain trends and how to address them. Developing the strategy requires forming a cross-functional team to define new capabilities, establish skills needed, get organizational buy-in, and ensure execution through the sales and operations planning process.

3.  Customer Requirements The development of an integrated supply chain strategy needs to start
with an assessment of the present and future supply chain requirements from the Customer
perspective
 Internal Capabilities  to determine the gaps between an organization’s actual performance and the
present and future Customer requirements
 Product Complexity (too many products),
 Inventory Management (slow-moving and obsolete),
 Product Development (supply chain consideration not part of the product design),
 Demand & Supply Balancing (ineffective matching of supply and demand),
 Physical Network Design (demand-supply network not optimized),
 Globalization Challenges (global issues and outsourcing problems)
 Supply Chain Trends It is vital that an organization considers the major supply chain trends and
determines how it will address each of them as part of its integrated supply chain strategy.
Supply chain trends:
 Lean Six Sigma
 Management of Complexity
 Physical Network Optimization Methods
 Risks & Opportunities of Globalization
 Focus on Cost & Working Capital

4.  Competitive Analysis  it is far more useful to focus on understanding the competitor’s
processes, technology, and network underlying capabilities
 Supply Chain Technology  Technology helps an organization with enabling and
sustaining new processes and capabilities necessary to execute the supply chain
strategy.
 Supply chain risk 

5.  New Supply Chain Capabilities  To define and prioritize new supply chain
capabilities we suggest that the organization forms a cross-functional strategy team,
including resources from sales, IT, and finance, and organizes a two- or three-day off-
site meeting to initiate the process.

6.  Supply Chain Organization, People & Indicators  the strategy team needs to
establish a complete list of skills and competencies needed for each position and then
evaluate the existing people based on whether they have already these skills or if they
are able to acquire them.
 Business Case & Buy-In  The process of getting buy-in at all levels of the
organization needs to begin on the first day of strategy development. It strongly
suggest that the supply team forms a cross-functional strategy team, including
resources from sales, IT, and finance, when starting to identify and prioritize new
supply chain capabilities.
 Supply Chain Strategy Execution The execution of an organization’s supply chain
strategy is best managed as part of the Sales & Operations Planning (S&OP) process
and meetings. In case an organization should not have an S&OP process, this may be a
good time to develop and implement one as part of their integrated supply chain
strategy.

9.  Customer service policy – considering: order fulfilment requirements, enquiry
and investigation capability and the available information. The customer
service policy informs the nodes and links of the supply network
 Inventory location policy (Supply Network nodes) – differentiate facilities by
fast and slow moving stock; location of sites; use of specific technologies and
layouts; company-owned or contracted facilities
 Inventory policy – form and function of inventory by location; the appropriate
amount of stock to hold for various groups of inventory; planning structure that
links outbound and inbound materials
 Cost plan – trade-off analysis between cost and service level requirements; cost
of Logistics operations

10. Transport and distribution (Supply Network links) policy – This
incorporates transport modes, delivery pattern and storage
location considerations, based on the time taken for deliveries.
IT and Communications capability: technologies (including
software) that will be internally developed; buy planning and
scheduling applications from single supplier or obtain ‘best of
breed’ applications
Logistics organisation structure: function or flow based;
allocation of responsibilities; managed or self-managed teams
Logistics Targets and metrics: measures of performance and
achievement targets; operations improvements process and
management

11.  Lack of ownership
 Poor communication
 Lack of alignment
 Slow adoption

13. Organizations use reverse logistics when goods move from their
destination back through the supply chain to the seller and
potentially back to the suppliers.
The objectives of reverse logistics are to recoup value and ensure
repeat customers.
to build customer loyalty and repeat business and to minimize
losses related to returns.

15.  Process the Return
 Deal with Returns
 Keep Returns Moving
 Repair
 Recycle
What is Reverse Logistics & Why is it Important? – YouTube
Freshmarx Food Supply Chain Animated Video - YouTube

16.  find out the reverse logistics process in the beverage industry, the construction
industry, the food industry

17.  Returns management
 Return policy and procedure (RPP)
 Remanufacturing or refurbishment
 Packaging management
 Unsold goods
 End-of-life (EOL)
 Delivery failure
 Rentals and leasing
 Repairs and maintenance

18.  Industry
 National
 Macro environment
 Financial
 Technological
 Managerial
 Markets
 Laws
 Technology
 The actions of the competitors.