Strategy

Strategy

Supply chain strategies are pivotal to the success of most contemporary business organizations and they may be equally important for not-for-profit organizations too. Organizational decisions relating to the design and structure of supply chains determine supply chain strategies and are an important recurring theme throughout this text. It is important to recognize that supply chain strategies exist whether or not they are planned. In other words all organizations de facto have a strategy. An organization making an operational decision to procure materials may not be conscious of determining a supply chain strategy but that decision taken ex-ante may have longer-term consequences both for the purchaser and supplier. For example, ex-post it may have determined the lead times, costs and quality involved in production or service provision over a long time period. Essentially what appeared to be an operational decision has become a strategic decision, albeit an unconscious one in the example. The chance meeting in the early years of the twentieth century between Mr Marks and Mr Dewhirst set in train one of the longest lasting supply chain relationships in history for both Dewhirst, the clothing manufacturer, and Marks and Spencer, the retailer. What was essentially a 'one-off' meeting for Marks to acquire shirts for his new penny bazaar in Leeds led to a strategic supply decision. This is not to say that all strategic decisions are serendipitous, many are planned. This book can only really help with the latter type of strategic decision. If you...