Supply chain orientation

Johnston and Wright (2004), based on their international study, propose a preliminary model of the many influences on an SME s capability to adopt supply chain-oriented networked processes (see Figure 4). Their paper explains in much greater depth the various components. One possible influence missing from this model is technology. 

SCO Supply chain orientation. A term coined by the University of Termessee Supply Chain Research Group. It is a management philosophy that recognizes the implications of proactively managing both the upstream and downstream flows of products, services, finances, and information. 

Supply chain orientation The idea of viewing the coordination of a supply chain from an overall system perspective with each of the tactical activities of distribution flows viewed within a broader strategic context. Actual implementation of supply chain orientation is supply chain management. (Council of Supply Chain Management Professionals)... 

Naim et al. (2002) A guide for conducting Quick Scan, a supply chain oriented business diagnostics. 

The approach taken by Naim et al. (2002) is a guide for performing a supply chain oriented business diagnostics called Quick Scan. (Juick Scan is the first step in identifying change management opportunities in the supply chain. 

The customer area contains dimensions such as the strategic supply chain orientation of a company in order to decide whether the supply chain is agile or leagile . Furthermore, it is determined which competitive priorities are essential and if the product shall be delivered as a stocked product, make-to-order product, or engineer-to-order product. 

Case 4 Establishing a supply chain performance measurement system An SME is trying to impiement a suppiy chain performance measurement system to assess the performance of its supply chain. The company wants to measure the efficiency of its operations and the atteiinment of its objectives with the given resources. In case a strategic supply chain orientation is not yet in place, the company can implement SCD Phase 1 CM1 before starting to implement the 1 ... 

Are there regions where the customers should be served mainly by means of an agile strategic supply chain orientation and at least one other region where the customers should be served mainly utilizing a lean strategic supply chain orientation ... 

Table 6.3 shows manufacturing strategies in combination with both the make decision and the time frame in which a product is completed and produced. Lean strategic supply chain orientation show more make-to-stock product processes, whereas the agile strategic supply chain shows more make-to-order product processes. 

Table 6.4 shows the manufacturing strategy combined with the sourcing procedure in a table. The analysis of the table shows the impact that the strategy has on procurement and the product itself. Lean strategic supply chain orientation shows more... 

Stocked product processes, whereas agile strategic supply chain orientation favors more source make-to-order product processes or engineer-to-order product processes. 

Analyzing the supply chain strategy Determination and ranking of the characteristics describing the supply chain strategy Validation of the strategic supply chain orientation... 

However, the most important issues to be determined in this context with regard to the requirements of a specific customer segment are the order qualifiers and order winners . This concept, initially developed by Hill in 1985 (Hill 1993), comes from the field of manufacturing theory. Christopher and Towill (2000), however, adapted it and developed a wider supply chain oriented concept. 

This section aims at evaluating the current strategic supply chain orientation for a customer segment and, in a first step, some basic questions are presented to prepare the reader for the actual determination of the supply chain strategy. In a second step, the concept of competitive priorities is explained in order to describe the current supply chain strategy of a company. Finally, the strategic supply chain orientation is evaluated. 

Fundamental Aspects of Strategic Supply Chain Orientation... 

In the example in Table 9.1, the result of the ranking indicates a strategic focus on costs, which refers to a rather lean strategic supply chain orientation, as already outlined at the beginning of this part. In order to evaluate whether or not the... 

Table 9.15 Six possible strategic supply chain orientations...

Strategic supply chain orientation Corresponding competitive priority... 

In general, the results from the two analyses conducted in the CMl deliver six possible strategic supply chain orientations presented in Table 9.15. Regarding the Active example, the desired supply chain orientation and the corresponding competitive priorities are marked in bold. Only the two first competitive priorities of the ranking are marked due to the fact that those are the most important to be considered. 

Table 9.16 Key performance indicators with respect to different strategic supply chain orientations (1/3)... 

Corrective action Change strategic supply chain orientation to leagile-. 

The individual gap s criticality for the organization s competitiveness should be assessed. Deviations from the desired states in categories such as strategic supply chain orientation are more vital to an organization s performance than differences in areas like the information sharing level with customer and suppliers, and should therefore be addressed first (which is not to mean that the... 

Strategic supply chain orientation Changing the supply chain orientation from lean to leagile. 

Depending on the nature of the gaps, corrective actions should either be selected for each one individually or jointly. PC Manufacturing Inc. decided to pursue the goal of improving the level of information sharing between its supply chain partners. If possible, however, actions should be found which can have a supporting effect on the supply chain orientation as well. 

Strategic supply chain orientation Important the strategy is central to satisfying a customer segment Relatively large a switch to a leagile supply chain strategy would improve supply chain processes Could help to reduce inventray levels... 

Consistently supply chain-oriented, modular software packages will replace the ERP systems currently on the market. 

Skeleton purchase agreements including supply-chain oriented concepts for shorter delivery times and even lower prices. 

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