Understanding Supply Chain Performance and Strategic Fit
This video discusses the strategic fit and drivers of supply chain performance, using Walmart and 7/11 as examples.
00:00:00 The video discusses the importance of aligning supply chain strategy with competitive strategy, using Walmart and 7/11 as examples.
📦 Supply chain strategy must align with the competitive strategy of the company.
💰 Different competitive strategies require different supply chain strategies.
🌟 Responsive supply chain strategy is crucial for businesses competing on responsiveness and customer satisfaction.
00:01:04 Supply chain strategy must be aligned with the product type. Functional products need efficient supply chains for availability at low prices, while innovative products require responsive supply chains for new technology.
🔑 Different products require different supply chains.
🔄 Functional products require efficient supply chains.
💡 Innovative products require responsive supply chains.
00:02:07 This video discusses the strategic fit and drivers of supply chain performance. Six drivers, including facilities and transportation, can make a supply chain more efficient or responsive.
⚙️ Supply chains can be designed for efficiency or responsiveness.
🚚 There are six drivers of supply chain performance: facilities, inventory, transportation, information sourcing, and pricing.
🏭 Facilities refer to the physical locations in the supply chain network.
00:03:11 This video discusses the strategic fit and drivers of supply chain performance, including facility, inventory, transportation, information processing, and sourcing decisions.
📦 Warehouse location, inventory decisions, and transportation modes are key drivers of supply chain performance.
💡 Processing information and sourcing decisions play a crucial role in cost savings and performance improvements.
00:04:15 The video discusses the six drivers of supply chain performance: facilities, inventory, transportation, information, sourcing, and pricing. These drivers are critical decisions that can have a high impact on supply chain performance and profitability.
Supply chain activities can be performed internally or outsourced.
The strategic fit of the supply chain is determined by the decisions on manufacturing, distribution, and retail.
Pricing is a critical decision that affects profitability in the supply chain.
00:05:19 The importance of information, demand, sourcing, and pricing in improving supply chain performance.
📊 Having the right information in the supply chain can greatly improve performance.
💰 Decisions related to sourcing and pricing can significantly impact profitability and performance.
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