Monday, 14 January 2019

Achieving strategic fit and in scope in the supply chain

Achieving strategic fit and in scope

The company's competitive strategy refers to a set of needs of customers who wanted to meet the needs through products, hanging from its competitors.

The value chain of the company started from the development of new products, by creating the specifications for the product. Marketing and sales generate demand through publication of priority-priority customers with satisfactory products and services.


Marketing also brought customers back in the development of new products. With the new product specifications, operations change the input into the output to create a product. The distribution also carry products to customers or bring customers to your products. The service responds to customer demand during or after the sale. This is a core function or process that must be done to achieve a successful sale. Finance, accounting, information technology, and human resources support and facilitate parts of the value chain.

To implement the strategy of competitive companies, all of this functionality is to portray each role and must develop its strategy on its own. Here, the strategy is defined as each process and function what will try to do well.

Product development Strategy is defined by setting the portfolio of new products that the company will try to develop. Marketing and sales strategy defined by specifying how the market will be divided and how the product will be positioned, given the price, and promoted. Strategy supply chain refers to the nature of the procurement of raw materials, transportation of materials to and from the company, produce the product or operations to improve services, and the distribution of products to the customer, after-sales services and which will be dealt with on its own or in-outsourcing on others more competent.

Strategic fit mean that the competitive value chain strategy and have the same goal. This means the existence of consistency between the priorities of customers who are expected to be filled by competitive strategy and the ability of the value chain can be built with supply chain strategy.
Strategic fit is achieved by three stages, namely:

1. Understand customers and uncertain supply chains.

First, companies must understand their customers ' needs in each segment of the supply chain and uncertainties faced fulfillment. This requirement helps companies find cost of desire and demand for services. The uncertainties of supply chain helps companies identify the level of demand prediction's inability, delay and disruption, which should be prepared by the value chain.

2. understand the ability of supply chains.

There are several types of supply chain, each designed for a different task execution. The company should understand to do what the supply chain.

3. The achievement of strategic fit.

If there is no comparable competition among supply chains with customer needs, the company will also reorganize the supply chain to support competitive strategy competitive strategy or change.

The bottom line:

The first step in the achievement of the strategic fit between the competitive and supply chain strategy is to understand the customer and supply chain uncertainty. Uncertainty from customers and supply chains can be combined and mapped on the spectrum uncertainty.

The second step in the achievement of the strategic fit between the competitive and supply chain strategy is to understand the supply chain and map it in the spectra of the reaction ability.
The last step in the achievement of the strategic fit is the compatibility between the reaction capabilities of the supply chain with the uncertainty of demand and supply. Supply chain design and functional strategy all over on the company should be able to support the supply chain reaction ability level.

The scope of strategic fit is the functions that exist in the company and the steps that the right can find a relationship strategy with objectives. Inter company scope of strategic fit at this point is crucial because the competition in the area of the company the company has turned into a competition with the supply chain supply chain to another.

The company's partners in the supply chain will determine the success of the company. Inter company scope of strategic fit requires the evaluation of each action on a company in the overall supply chain. This scope extends to all steps in the supply chain.

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