Strategic Fit

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sAchieving Strategic Fit
>How is strategic fit achieved?
>Other issues affecting strategic fit
* Strategic fit:
–Consistency between customer priorities of competitive strategy and supply chain capabilities specified by the supply chain strategy –Competitive and supply chain strategies have the same goals. * A company may fail because of a lack of strategic fit or because its processes and resources do not provide the capabilities to execute the desired strategy  Example of strategic fit – Dell

How is Strategic Fit Achieved?
Step 1: Understanding the customer and supply chain uncertainty Step 2: Understanding the supply chain
Step 3: Achieving strategic fit
Step 1: Understanding the Customer and Supply Chain Uncertainty * Identify the needs of the customer segment being served * Quantity of product needed in each lot
* Response time customers will tolerate
* Variety of products needed
* Service level required
* Price of the product
* Desired rate of innovation in the product© 2004 Prentice-Hall, Inc. 2-10 * overall attribute of customer demand
* Demand uncertainty: uncertainty of customer demand for a product * Implied demand uncertainty: resulting uncertainty for the supply chain given the portion of the demand the supply chain must handle and attributes the customer desire * Implied demand uncertainty also related to customer needs and product attributes * First step to strategic fit is to understand customers by mapping their demand on the implied uncertainty spectrum Achieving Strategic Fit

* Understanding the Customer
–Lot size
–Response time
–Service level
–Product variety
–Price
–Innovation
Step 2: Understanding the Supply Chain
* How does the firm best meet demand?
* Dimension describing the supply chain is supply chain responsiveness * Supply chain responsiveness-- ability to
–respond to wide ranges of...
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