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strong listening skills, particularly with customers—and then use what you have heard to identify customer values and problems and to design appropriate responses; (3) rely on influence—make sure that your voice is heard and that people feel compelled to implement your •16-3 •IM Supply Chain Management: A Logistics Perspective •Strategic Challenges and Change for Supply Chains Instructor’s Manual •Chapter 16 •suggestions; and (4) develop your personal leadership brand, one that reflects a strong growth bias.
•Supply Chain Strategies •The next several sections provide details concerning areas in which it is important to develop effective logistics and supply chain strategies. The five high-priority items include differentiation, financial, technology, relationship, and global strategies. •Differentiation Strategies •Simply stated, this strategy refers to the extent to which the supply chain approach of a particular company may be different and unique and thus “differentiate” it from those of competing organizations. The basic concept underlying differentiation is to see that supply chain capabilities are viewed by customers as being sufficiently effective and unique to distinguish an organization in the marketplace. To a large extent, differentiation materializes in some combination of price and service. Although supply chains may strive for differentiation in many ways, this section will
elaborate briefly on elements of time-based strategies, ones that typically have short- and long-term positive effects on levels of customer service that are delivered by supply chains. •Time-Based Strategies •The value of time can be measured in a number of different ways. Supply chain strategies that shorten the length of the order and/or replenishment cycle have been the focus of much attention in recent years. Time-compression strategies have also received attention •Reducing Cycle Time •Reductions in cycle time are based on three factors: processes, information, and decision making. Another important source of reductions in cycle time is faster provision of information. The utilization of faster, more efficient forms of order transmission can significantly reduce the time needed to complete the transaction. Also, the use of contemporary
information technologies is becoming increasingly attractive as technology costs have been declining significantly. The final factor in reducing cycle time is decision making. The critical issue is to empower individuals to make decisions relevant to their areas of expertise and responsibility. •Time-Reduction Logistics Initiatives •It is imperative is for firms to develop the ability to know where all products may happen to be at any point in time. Interest has grown recently in the area of leveraging the power •16-4 •IM Supply Chain Management: A Logistics Perspective •Strategic Challenges and Change for Supply Chains Instructor’s Manual •Chapter 16 •of effective demand planning and forecasting to more meaningfully moves from “push” to “pull.”