What is supply chain strategy?
Supply chain strategy refers to a strategy of how the supply chain can achieve the business and organizational goals of the enterprise in the process of enterprise development.
It must be consistent with the strategy of enterprise development.
World-class companies such as Apple, Cisco, Amazon, and Procter & Gamble all promote strong collaboration between their supply chains and business teams to execute business strategies.
Important elements for supply chain strategy
Application of supply chain strategy
Procter & Gamble represents the efficiency strategy, and its main products are Functional products. Procter & Gamble’s supply chain requires maximum resource utilization, minimize inventory, maximize inventory turnover, and the shortest order delivery time. The selection criteria of suppliers are low prices and guaranteed quality. The P & G supply chain strategy is to reduce operating costs and maximize overall efficiency.
And Apple represents the Responsiveness strategy. As the world’s most famous electronic product design manufacturer, Apple’s business strategy is very focused on product innovation, iPhone products will launch a new product every six months, so Apple’s supply chain strategy must also be very agile, The speed of product iteration must be fast enough so that it can keep up with the pace of enterprise development. The supply chain focuses on products quickly occupying the market, and logistics costs are not particularly valued.
Here is a short video to analyse how to quickly define the supply chain. It is very clear and interesting. Please have a look!