Supply chain dimension

The frameworks of both Fisher (described in Section 5.1.3) and Porter support the idea that the supply chain is fundamental to competitive success. Certainly, products with superior features and design contribute greatly. However, innovation in the supply chain dimension is often on a par with product design as a determinant of success. After all, it is the supply chain that puts the product in the hands of end-users. 

Parameters usually are more specific to a particular decision-making problem compared to other supply chain dimensions discussed earlier. Some common features, however, can be identified. 

The Supply Chain dimension includes not only the distribution of the physical product but also the many activities that compose delivery of the extended product as well. Examples include accompanying services such as technical support, financing, and distribution. The best in class often have great service reputations, if not exceptional products. The also ran companies are ones we avoid if possible. 

With this information, teams can begin working to bring this map to a new and improved state. Such an effort always starts with a focus on internal functions and processes — to clean up existing problems, mistakes, and errors, and optimize internal efficiency. Then the focus can move outside to look at how every hand-off in the end-to-end processing can be improved and made as effective as possible for customer needs. Eventually, the effort spans a full network — an extended enterprise — and applies the appropriate cyber-based technologies to establish the most effective value chain in the eyes of the desired customers and consumers. This most advanced level will contain the greatest span of supply chain dimensions and, of course, the most work to reach completion. 

Three structural dimensions of the network are essential when describing, analyzing, and managing the supply chain. These dimensions are the horizontal structure, the vertical structure, and the horizontal position of the focal company within the end points of the supply chtiin. 

Organizational culture Continued) definition of, 956 dimensions of, 958 and new technology, 956-961 process-control-minded, 2002, 2003 propensity towards change in, 1705 and supply chain management, 2126, 2127 for sustaining knowledge management, 216-217... 

Performance of a supply chain distribution network is evaluated through two dimensions. These are the customer needs and the cost of meeting customer needs. Therefore, a trade-olf, between satisfying customer needs and keeping transportation cost minimum, is made in order to decide which distribution network is better. 

In today s global operations environment, competitive suppliers are expected to follow manufacturers to different locations around the globe and provide product with consistent quality and delivery metrics. How should a supplier position a supply chain structure to succeed in such an environment Should operations be established in all of the locations where the manufacturer plans to operate Should alliances be established with local suppliers to supply this manufacturer Or should logistics companies be used to supply locally but from central manufacturing locations Each of these questions provides interesting alternatives to be competitive on the global access dimension. Given the need to coordinate... 

How do apparel supply chains compete One approach is to compete on cost, an approach used by Walmart and other department stores. This strategy focuses on developing a cost-efficient supply chain that may require global sourcing with low costs but long lead times. Such supply chains then require large buffer stocks to compensate for demand uncertainty or a focus on predictable demand for basic products with low demand uncertainty But there are many other dimensions of competition in the apparel industry. 

Measurement and strategic adjustment of the downstream e-supply chain network and the upstream service provider business remains vital to maintaining and improving competitive positioning. The balanced scorecard offers such measurement dimension. 

The increased dimensions in the organization call for the usage of collaborative and Web-based teehnologies for data collection. The data handling and integration systems in a supply chain come with increased communication and quality capabilities. This happens through increased collaboration among the elements of the supply chain down the line. 

As seen in the APICS definition, physical, information, and financial flows are frequently cited dimensions of the supply chain. The viewpoint, a very common one, of supply chains as only physical distribution is too limiting. Information and financial components are as important as physical flow in many supply chains. As mentioned above, often omitted from the supply chain discussion is the role of knowledge inputs into supply chain processes. 

Upton defines three dimensions as a flexibility framework. The framework can easily be translated from the manufacturing system level, where he proposed it, to the supply chain. Table 3.2 summarizes the framework and provides examples. Upton recognizes the problems that go with defining flexibility. Just saying, We need to be flexible, is inadequate due to the many possible interpretations. To define the form of needed flexibility, he poses three questions, paraphrased in Table 3.2. 

A sphere is a market-product-operation combination that provides a way to divide and conquer in developing and implementing supply chain processes that serve customers better. The term sphere derives from the fact that a sphere has three dimensions — markets, products, and operations — described in Table 6.6. Identifying spheres draws boundaries around the supply chain, helps decide what organization model to follow, and defines what customer-serving processes are needed. All three of these are vital to successful SCM. 

The dimensions, in the left-hand column in Table 6.6, are markets, products, and operations. Markets are the segments as defined by the company. Products are those sold to that segment. Operations are the supply chain components (suppliers, manufacturing, and distribution organizations, equipment, and facilities) used to source, make, and deliver the products to the customers. 

Table 7.2 provides examples of the factors to consider in each distance dimension. It serves as a checklist for identifying distance factors for proposed supply chain initiatives. 

The other dimension in Figure 9.3 is value. Value, in this application, is the product s importance either to the customer or to the company. High-value products sell for high prices and generate profits for the company. As described in Section 5.1.3, innovative products, by definition, are high value (quadrants I and II) while functional products are often low value (quadrants III and IV). Innovative products need responsive supply chains while functional products need efficient ones. 

The need to consider the supply chain adds another dimension to the CE concept. Now it is not just tooling and material that must be considered, but also the distribution channels, inventory policy, and other supply chain issues. CE for the entire supply chain particularly fits in the case of B, C, and E products in the development funnel. In these cases, a new product is more likely to be accompanied by a new supply chain. These are likely to be major projects involving a great number of unknowns about the market and the likelihood of commercial success. 

A list of components, or articles, that might go into a partnership agreement helps us define the dimensions that a collaboratory might have. Table 17.1 lists collaboration articles provided by supply chain expert William Walker. This is followed by some illustrations. Chapter 18 returns to the topic of partnership definition. 

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