TABLE OF CONTENTS After reading this chapter you should be able to:
know that supply chain strategies are more effective when they are market-driven and customer-focused;
know and understand what it means to be customer-focused and what it means to have supply chains that are market-driven rather than supply-side-driven;
know the importance of product definition in terms of a bundle of goods and services;
identify and discuss the differences between manufacturing and service industries and implications for supply chain strategies;
understand that strategic thinking is important for developing appropriate supply chain strategies;
have knowledge of different supply chain strategies that can be employed in manufacturing and service industries.
This chapter examines a number of important concepts in relation to organizational supply chain strategies being market-driven and customer-focused. It begins by discussing management functions and management integration across functional and organizational boundaries. The distinction between product push and market pull strategies is explained before discussing product and service attributes in the context of being customer-focused in the supply chain. Supply chain strategies are discussed for products and service industries and a number of supply chain levers are discussed building a conceptual framework in which supply chain strategies are conducted. Market-driven supply chain strategies are examined using Ansoff's product/market matrix before finally exploring order-winning supply chain strategies.
Historically organizations were managed functionally to structure and co-ordinate different activities. For example, production was concerned with transforming inputs into outputs and the focus might have been on...
