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Supply Chain and Operation Strategy

In: Business and Management

Submitted By VincentVal
Words 792
Pages 4
I believe that supply chain is the base of an operation strategy. The relationship between both is crucial to define limits in an overall strategy for the company and the link for this relation must be the reconciliation between our resources and the requirements of the market. All decisions made over operation strategy and supply chain would aloud scale economies or may open the scope over markets. For example, Benetton moves inventory to stores around the world faster than its competition by building flexibility into design, production, and distribution or, Sony that purchases components from suppliers in Thailand, Malaysia, and around the world. These examples lead to my next points. Under the concept of strategy’s four perspectives, there is an external and internal overview that permits framework for a deep analysis or SWOT, which will help to develop an effective strategy formulation. It is not easy to explain market movements but we can have in mind the flow of the strategy decision areas (resources, capabilities, processes) and performance objectives (customer needs, market positioning, competitors actions). In the other hand, top-down/bottom-up perspective give us a concept that clarify the link over a corporate strategy, tactical and operational experience. To understand this concept, I prefer to support my analysis on the five generic competitive performance objectives, that allow us to understand the necessity of being right (Quality), being fast (Speed), being on time (Dependability), being able to change (Flexibility) and being productive (Cost). For example, Wal-Mart based its strategy over a cost strategy offering to customers the lowest prices. That was their competitive priority. According to Ivanov, D. (2010) there is a sort of divorce between strategic, tactical and operational planning approaches and decisions on supply chain were made over…...

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