Supply chain architecture coordination

The first goal of this book is to focus on supply chain architecture by focusing on four specific concepts, i.e., the Four Cs of supply chain man etnent. These four Cs are chain structure and ownership, capacity—its type and location across the supply chain, coordination mechanisms, and competitiveness—the metrics of competition and the competitive pressures faced by the supply chain. Choices made regarding each of these Four Cs generate possible supply chain architectures. 

This chapter focused on examples of supply chains and their underl dng supply chain architecture, using a Four C conceptual framework. The Four Cs refer to chain structure and ownership, capacity, coordination, and competitiveness. The supply chain audit permits an understanding of current choices and an approach to evaluate alternate choices for supply chain architecture. The goal of this chapter was to explain the Four C choices made in different successful supply chain contexts. 

What does all this mean for a supply chain manager in Europe It means that spatial distance may not be an appropriate way to look at the supply chain because country boundaries may have an impact. It means that individual country specific rules regarding truck sizes and movement would need to be considered while planning the supply chain network. Coordination agreements to decide how orders are initiated and delivered could have a significant impact on costs. In short, the supply chain architecture in Europe would have to respond to the specific European logistics context. 

HP has transformed the supply chain to a hub-and-spoke architecture to coordinate the supply process by sharing information among the participants, shown in Fig. 3.8. 

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