Chapter 4: Supply chain
strategies
Pg 57-76 in textbook
1. Strategy
Strategy?
= Planning and configuring the organization for the future in accordance with certain stakeholders
expectations
= A long term plan for success
• This part: not focused on corporate strategy but more on link between strategy and both
logistics & SCM
• Top-down approach
- Corporate level
- Business unit level (companies divided into different sub-units)
- Functional level = departmental level, e.g. marketing, IT, SCM,…
• Bottom-up approach
- More weight possible for certain department as input for corporate strategy
• Break the silo-structure!
• Strategy implementation is the hardest part
Top down vs bottom up
Focus area: formulating
functional strategy of logistics
& SCM should not be restricted
to the department alone. It
should focus on cross-
functional, process-based
perspective!
, 2. The evolution of manufacturing
See the arrow
from craft
production, via
mass production,
lean production
and now mass
customisation
Balance between customer
service & costs!
Satifying customer demand
Producing large volumes
and benefit from
economies of scale
Prior to industrial revolution, skilled artisans produced goods customized for individual customer needs
= craft production
Satisfied customer demand but comes at high costs
One of the most exciting advancements in the early twentieth centure was the widespread development
of mass production => Henry Ford
Economies of scale: Model T
3. Lean production
= Lean production and logistics is focused on eliminating waste using a set of proven standardized tools
and methodologies that target organizational efficiencies while integrating a performance
improvement system utilized by everyone
The origins of lean production and logistics can be traced back to the car company Toyota and its
Toyota Production System (TPS)
System not focused on efficiency of
individual machines, rather on total
flows through a system
Pull rather than psuh
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kiarademoor. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.59. You're not tied to anything after your purchase.