supply chain management

• SCM influences all elements of a firm’s financial performance,

  including cost, assets, and sales

• Reflect in how to measure supply chain performance:

  Supply chain performance metrics according to SCOR

  – External (customer oriented)

  • Reliability

  • Responsiveness (speed)

  • Agility (flexibility)

  – Internal

  • Cost

  • Assets

Strategic alignment

• Companies compete on different product attributes

• These require different operational competencies

• Different competencies are interrelated, thereby causing trade-offs

• => SCM has to make choices / set priorities

Common classification

• Functional products

• Innovative products

To achieve using:

• facilities

• transportation

• Inventory

• IT

= production and distribution facilities

• strategic choices

  • Geographical location

  • Ttype of facility

  • Capacity