Supply Chain Strategy

Building the Supply Chain of the Future

Value Chain StrategyBecoming a supply chain leaders means challenging conventional methods, extracting value from networks, and planning for uncertainty.

True end-to-end supply chain strategies accounts for customer demand, fulfillment, sourcing, and a company’s own manufacturing and distribution operations.  Strategic changes often happen slowly but the consultants at Operation Consulting Group have developed problem solving methods to quicken the process by framing your businesses around facts.

Value Chain Strategy Matrix
The value chain strategy mix is one framework we use to should the relationship between manufacturing costs and fulfillment costs.  The 4 sections is a guideline on how your supply chain should be engineered for maximum profitability.

Pipeline Strategy

Pipeline Strategies
Pipeline Strategies, has the familiar 2 sections but shows the relationship between latency and predictability of demand.  We evaluate demand for products and determine which supply chain strategy is most beneficial.

Older supply chain strategies have been engineered to manage stable, high-volume production by capitalizing on labor-arbitrage opportunities available in China and other low-cost countries. Many supply chains strategies are not equipped to cope with the world we are entering. In the near future attractiveness of manufacturing locations will quickly change. Companies are becoming dangerously exposed to changing economic conditions. Acting to secure competitive supply chains now will have dramatic impacts for business over the next 10 years.  Operation Consulting group has researched these changes and is prepared to help companies establish value added strategies.

Supply Chain Value Disciplines

4 ways to view a companies supply chainValue Disiplines

To define a business’s supply chain strategy we need to break down a business into value disciplines.Below is a list of 4 value disciplines and an example of each.

Operational Excellence – is well known for their extremely efficient distribution system. It began as an online book store and would deliver books across the United States at record speeds.  Since they are completely an e-commerce retailer, they could track demand and create an efficient logistics system by means of distribution centers.Also, since the cost of maintaining an online store is relatively cheap compared to the cost of maintaining large bookstores such as Barnes and Noble, Amazon has been able to specialize in operational excellence.  This focus has allowed Amazon to have competitive prices and excellent service.  There is also a quality guarantee associated with the site that reduces search cost and risk.

Product Leadership – Apple

Apple is on the cutting edge of innovative products for consumers and has created large markets for their beloved products.  The company invests heavily in research and development to maintain a market leader in portable music players (the iPod), smart phones (the iPhone) and tablet computers (the iPad).  The company has focused on consumer preferences and user interfaces to maintain its popularity and extend its brand. Apple is an excellent example of product leadership because of its current and past success with creating new products that appeal a vast sea of consumers.

Customer Intimacy – Hewlett-Packard

HP provides a broad product line including customized computers based on user needs and personalized laptop skins.  HP sells standardized computer configurations but more importantly will customize PC’s and deliver them directly to the customer.  Consumers can order based on their preferences in processors, memory, hard drive capacity, displays and even keyboard styles, such as the back lit keyboard.

Service Leadership – Google

Google offers state-of-the-art services in multiple fields; mobile, media, social media, specialized search, innovation.  Google currently runs the most efficient and effective data center in the work providing users with fast reliable information technology.