scm_ch06 - Supply Chain Management: From Vision to...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Supply Chain Management: From Vision to Implementation Chapter 6: Scanning and Global Supply Chain Design
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Chapter 6: Learning Objectives 1. Discuss the emergence of SCM as a strategic response to a changing competitive environment. 1. Explain the transition from ownership (vertical) to relationship (virtual) integration strategies. 1. Discuss how managers can use scanning and planning processes to define the rules of competition.
Background image of page 2
3 Chapter 6: Learning Objectives 1. Describe the forces driving change in today’s market and their effect on decision-making. 1. Identify the issues driving globalization. Explain how globalization has changed the rules of competition. 1. Discuss the critical issues involved in designing a global supply chain network.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 As the economy changes, as competition becomes more global, it’s no longer company versus company but supply chain versus supply chain. -Harold Sirkin, Boston Consulting Group
Background image of page 4
5 SCM – A Strategic Weapon SCM enables winning business models by helping companies to: Meet the demanding needs of customers worldwide Build unique competencies to fend off fierce rivals Acquire the best resources globally Do it efficiently To deliver unsurpassed customer value, companies must develop unique competencies, relying increasingly on capable supply chain partners.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Vertical Integration Henry Ford viewed the vertically integrated organization as the ideal business model. Acquired critical production resources Hayes and Wheelwright identify the following rationale: 1. Desire to reduce cost 2. Desire to increase control Lack of focus actually contributed to decreased competitiveness
Background image of page 6
7 Relationship Integration Kieretsu provided Japanese companies with a competitive advantage Toyota and Honda rely on suppliers for approximately 80% of a car’s value Compared with 30% for American manufacturers Japanese model resulted in superior quality and a $2,000 per vehicle cost advantage Relationship integration via collaboration
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 A Changing SC World All advantage is temporary. No capability is unassailable, no lead is uncatchable, no kingdom is unbreachable. Indeed, the faster the clockspeed, the shorter the reign. Sustainable advantage is a slow-clockspeed concept; temporary advantage is a fast-clockspeed concept. And, clockspeeds are increasing almost everywhere. - Charles Fine, Professor at MIT
Background image of page 8
9 Environmental Scanning Proactive companies use insight gained from internal and external scanning to avoid surprises, identify opportunities and threats, and improve both tactical and strategic decision-making. Identifies a firm’s strengths and weaknesses vis-à-vis competitor capabilities and customer expectations. Scanning attempts to:
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/13/2011 for the course IT 230 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

Page1 / 38

scm_ch06 - Supply Chain Management: From Vision to...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online