Supply Chain Strategy and Planning

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03. Supply Chain Strategy and Planning

• Dr. Arunachalam Rajagopal

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Strategy Definition

• Strategy refers to the determination of the
  purpose and the basic long-term objectives of an
  enterprise and the adoption of courses of action
  and allocation of resources to achieve these
  aims Heinz Weihrich and Harold Koontz

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Supply Chain Strategy

• Supply chain strategy comprises of action plan
  for creation and delivery of value to customers
  in order to achieve the long-term objectives of
  the individual firm and the supply chain as a
  whole.

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Supply Chain Decision Phases

• The three main decision stages in supply chain
  planning are
• Supply chain strategy or design,
• Supply chain tactical planning, and
• Supply chain operation.

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Strategic Supply Chain

• Supply chain strategy or design involves
  decisions with regard to overall supply chain
  configuration.
• The strategic supply chain decisions would have a
  long-term impact.

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Strategic Supply Chain

• The strategic supply chain decision, in general,
  is related to
• Products and services
• Manufacturing plant number, capacity, and
  location
• Technology to be adopted
• Distribution channel configuration
• Supplier network

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Tactical Supply Chain Decisions

• The tactical supply chain decisions will have
  medium term impact on the supply chain
  performance.

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Supply Chain Tactical Decisions

• Supply chain tactical decisions include
• Market decision promotion and advertisement,
• Inventory to be maintained,
• Number of shifts of operation,
• Machinery and material handling equipment
  selection,
• Transportation modes,
• Customer segments to be served,
• Supplier selection,
• Distributor selection, etc.

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Supply Chain Operations Planning

• Supply chain operation planning is to do with
  detailed action plan which effectively converts
  the supply chain stagey and tactical plans into
  daily / weekly activity schedules.

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Drivers of Supply Chain Performance

• Sunil Chopra and Peter Meindl (2002) have
  identified the drivers of supply chain
  performance as
• Facilities,
• Inventory,
• Transportation, and
• Information.

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Thank You