Supply chain strategic priorities

This article addresses the above listed problems and related issues, offers recommendations for their rational solution. Namely, it has been defined that the main priorities of transit countries in the South Caucasus region in a foreseeable future are diversification of imported fuel supply, enhanced use of local energy sources, improved self-sufficiency by rehabilitation/renovation of existing electricity and gas supply chains, and the planning of strategic reserves combining water, liquid fuel and gas. 

Based on the strategic priorities and the financial impact, supply chain directors will... 

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. 

It is absolutely critical that top management support is ensured as certain fundamental strategic decisions have to be considered regarding the development of a customer requirement driven supply chain strategy and operation. Moreover, such support allows priority to be given to projects and helps to provide the necessary resources, which often cannot be allocated by the project leader himself due to a lack of power. 

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. 

Second, the assigned weights to each of the competitive priorities in the first part of Table 9.2 are added up and the fraction is translated into a percentage as shown in the second part of the table, indicating the strategic importance of each of the competitive priorities . In this specific example, cost at 50 % is ranked as the most important indicator to characterize the current supply chain strategy followed by quality, lead time and, finally, flexibility. 

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. 

Rules-based distribution planning system Demand priorities reflecting strategic customer relationships as business policies are automatically followed in allocating resources first-in-first-out (FIFO) is utilized as the default scheduling priority l-Customer segmentation and supply chain strategy 0 X X X... 

In case of the strategic path, the completed morphological boxes from SCD-Phase 1 and 2 are used to perform a gap analysis, which compares desired and actual supply chains and thereby helps to uncover differences between these two supply chain designs. The operative path provides that based on an organization s competitive priorities adequate key performance indicators (KPIs) are selected. Decision makers can use these KPIs to conduct a self-benchmarking of their... 

Level 1 and 2 information can be particularly helpful in setting implementation priorities and quickly strategizing needs like new systems, facilities, and outside support. Beyond Level 3, company practices are likely to be unique — in fact they should be, lest they create copycat supply chains. In applying the SCOR model to other frameworks covered in this book. Levels 1 and 2 are also the appropriate levels for designing the xmique activity systems using the process described in Chapter 7. Levels 3 and 4 would determine the tools and structure for implementing the activity system. 

From this discussion, we have seen that a supply chain approach to international industrial management affects all the competitive strategic priorities,... 

---