Supply chain management strategy planning and

Stephen Slade The years from through were notable for their economic volatility, reflected not only in the global economic recession but also the instability of customer demand and rapid movement in raw material, fuel, and commodity prices. Supply chain executives were under pressure to develop more efficient, customer-centric supply chains while finding innovative ways to reduce costs and enable growth.

Supply chain management strategy planning and

Share through Email advertisement Any company that has a global supply chain should consider introducing its strategic left hand to its operational right hand. Strategic supply-chain planning that combines aspects of business-strategy formulation with aspects of tactical supply-chain planning can make each far more valuable to the planning effort than either would be alone.

Strategic supply-chain planning is the Pegasus of strategy: It can soar, but it also needs to keep its feet Supply chain management strategy planning and the ground. Although companies routinely weigh long-term supply-chain-related decisions in light of alternative sources of supply, new geographic markets or new products, various levels of management use different approaches, often in isolation.

Senior managers make such decisions as part of formulating business strategy; supply-chain planners, as an extension of their tactical supply-chain planning. How should companies ensure that relevant supply-chain details inform the business-strategy formulation and that strategic direction and the supply chain are in alignment?

Supply chain management strategy planning and

They can do so through early communication between senior managers and supply-chain planners, which shortens strategy-implementation time while letting each group pursue its forte: Acme had been seeing revenue growth for several years, mostly as a result of acquiring other PVC manufacturers.

Some favored consolidating manufacturing into one or two new mega-plants; others suggested closing existing plants or lines. Management chose to do a strategic supply-chain planning exercise to assist decision making.

The Planning Spectrum Strategic supply-chain planning falls in the middle of a decision-making spectrum that has business-strategy formulation at one end and tactical supply-chain planning at the other.

Used in this strategic context, the tools help determine what would be an appropriate supply-chain configuration for sourcing and which plants or distribution centers should be closed or kept open.

Strategic Supply-Chain Planning and the Planning Spectrum View Exhibit Strategic Supply-Chain Planning and the Planning Spectrum Strategic supply-chain planning falls in the middle of a decision-making spectrum that has business strategy formulation at one end and tactical supply-chain planning at the other.

In contrast, tactical supply-chain planning is short- or medium-term in scope and impact, with supply-chain planners using past demand to make forecasts for the near term and adjusting these forecasts on the basis of market intelligence or planned promotions.

Used in this context, optimization models and APS technology help determine where and when to produce what items and how to distribute them. Planning Processes and Optimization Although business-strategy formulation also uses tools and frameworks, it requires much more creativity than tactical planning.

The optimum route to maximizing shareholder value is rarely obvious. It takes creative thinking and freewheeling negotiations to identify, understand and agree upon possible actions.

For tactical supply-chain planning, the decision options and the factors affecting them production capacity, distribution capacity, variable costs, demand forecast are clearly defined. The goal of minimizing total supply-chain costs — for manufacturing, storage and handling, and transportation — is narrower.

Supply chain management strategy planning and

Because tactical planners can identify beforehand possible decisions and factors that might affect these decisions — and can build those elements into the software — they can use optimization models that rely on mathematical techniques.

The models make recommendations that both minimize costs and help companies meet forecasted demand without exceeding production and distribution capacity.

Chopra & Meindl, Supply Chain Management: Strategy, Planning, and Operation, 6th Edition | Pearson

Advanced planning-and-scheduling technologies are available from several companies. But strategic supply-chain planning can benefit from appropriately used optimization models because tactical supply-chain models can be extended to include strategic decisions about closing or opening plants and distribution centers.

APS vendors offer software for that purpose. The factors rarely change — production capacity, distribution capacity and variable costs. The goal of minimizing cost is extended to include the fixed costs of keeping plants and distribution centers open and the one-time costs of opening new ones and closing existing ones.

How To Do Strategic Supply-Chain Planning

These more strategic computer models can then guide decision making. Optimization models for tactical supply-chain planning and models for strategic supply-chain planning differ only slightly in their design, but markedly in their use.

At General Motors Corp. Creating benchmarks in this way is unique to optimization models using linear programming, a method using advanced mathematics to capture all the constraints, such as capacity, and to find the best possible recommendations that would minimize the total operating cost or some other stated objective.

Such models guarantee the lowest possible supply-chain cost. Spreadsheet calculations or simulation models cannot provide that sort of benchmarking capability. In another case, a personal-computer manufacturer made successful strategic use of an optimization model for its global manufacturing and distribution network.Supply Chain Management introduces high-level strategy and concepts while giving readers the practical tools necessary to solve supply chain problems.

Using a strategic framework, readers are guided through all of the key drivers of supply chain performance, including facilities, inventory, transportation, information, sourcing, and regardbouddhiste.coms: Guiding Principles | Brightline InitiativeCapability Building · Thought Leadership · Practical Innovation · NetworkingTypes: Reports, Books, Events, Interviews, Videos, Infographics.

Supply Chain Management introduces high-level strategy and concepts while giving students the practical tools necessary to solve supply chain problems.

Using a strategic framework, students are guided through all of the key drivers of supply chain performance, including facilities, inventory, transportation, information, sourcing, and pricing.

Supply Chain Management introduces high-level strategy and concepts while giving students the practical tools necessary to solve supply chain problems. Using a strategic framework, students are guided through all of the key drivers of supply chain performance, including facilities, inventory, transportation, information, sourcing, and pricing.

Supply Chain Management Strategy Planning and Operation 6th Edition Chopra Solutions Manual More news on internet: Trump was born and raised in the New York City borough of Queens.

He received an economics degree from the Wharton School of the University of Pennsylvania and was appointed. The 7th Edition weaves in compelling case study examples to illustrate how good supply chain management offers a competitive advantage and how poor supply chain management can damage an organization’s performance.

With this text, readers gain a deeper understanding of supply chains and a firm grasp on the practical managerial levers that can /5(55).

Chopra, Supply Chain Management: Strategy, Planning, and Operation, 7th Edition | Pearson