Business Plan, Supply Chain Strategy, Collaboration Relationships

The following topics are discussed in this section: Business Plan A business plan is a written document that describes the overall direction of the firm and what it wants to become in future. (Definition) Business Plan is a statement if long-range strategy and revenue, cost and profit objectives usually accompanied by budgets, a projected balance Read More

Organizational Strategy

The following topics are discussed under this section: Goals of Organizational Strategy Whatever strategy the corporation adopts to satisfy customers, grow, compete, organize itself and make money the supply chain has to operate in a manner that furthers those goals. Four types of organizational strategy: Customer focus and alignment Forecast driven enterprise Demand driven enterprise Read More

Business Strategy and Competitive Advantages

Following topics are discussed in this section: Business Strategy Least cost relates to a lower cost flow than competition for an otherwise equivalent product or service. Differentiation relates to a product or service with more features, options or models than the competitive. Focus relates to weather the product or service is designed for a broad Read More

Supply Chain Alignment with Business Strategy

(Definition) Strategic Plan is a plan that describes how to marshal and determine actions to support the mission, goals and objectives of an organization. It generally includes an organization’s explicit mission, goals and objectives and the specific actions needed to achieve those goals and objectives. The supply chain strategy is a complex and evolving means Read More

Accounting and Financial Statement Basics

The Flow of Funds The flow of money or funds goes upstream from customer to producer and from producer to supplier as intermediate or final products or service are paid for. This funds flow is not linear since some upstream payments may occur long before the final good or service is even purchased. Why is Read More

Supply Chain Management Benefits

The numerous benefits of marketing supply chain management practices, systems and technologies include: Improved market knowledge. The three Vs – Increase velocity, increased visibility, and reduced variability in the flows of goods and services, funds and information. Integrated operations. Improved management of risk. Increased sustainability. Improved Market Knowledge With supply chain management in place, partners Read More

Supply Chain Management Objectives

Supply chain is more accurately viewed as a set of linked processes that take place in the extraction of materials for transformation into products or perhaps services for distribution to customers. (Definition) Supply Chain Management is the design, planning, execution, control and monitoring of supply chain activities with the objective of creating net value, building Read More

Stages of Supply Chain Management Evolution

Stage 1: Multiple Dysfunction The nucleus firm lacks clear internal definition and goals and has no external links other than transactional ones. In the dysfunctional organization, this is what tends to happen: Internal activities tend to be undertaken impulsively rather than according to plan. Management provides only the most general sense of mission, communicated perhaps Read More

Vertical Vs Horizontal Integration

Shift from Vertical to Lateral (Horizontal) Supply Chain Management Vertical integration, or vertical supply chain management, refers to the practice of bringing the supply chain inside one organization. It is difficult for one corporation to garner the expertise needed to excel in all elements of the supply chain, and it increases their risk, so corporation Read More

The SCOR® Model

SCOR stands for Supply Chain Operations Reference Model. SCOR links processes, metrics, best practices and technologies. (Definition) The SCOR® model is a process reference model developed and endorsed by non-profit corporation, the Supply Chain Council (SCC), as the cross-industry standard diagnostic tool for supply chain management. SCOR process model does not apply to all business Read More