Supply Chain Management



Supply Chain Management - Definition

Supply Chain Strategy

Supply Chain Performance


Supply Chain Management Best Practices

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Ideal Supply Chain Strategy - Supply Chain Management

Planning the Ideal Supply Chain Strategy

To arrive at an optimal supply chain strategy, two factors need to be balanced:

(1) Supply Chain Efficiency

Supply Chain efficiency can be increased by reducing the overall cost of the supply chain.

(2) Customer Responsiveness

Customer Responsiveness is higher the more satisfied the customer is. For example, a customer is more satisfied if delivery times are shorted, product quality is higher, customer support is efficient.

Optimal Supply Chain Strategy - Continued...

Higher customer satisfaction usually means increasing supply chain costs. Decreasing supply chain costs means lowering customer satisfaction.

Supply Chain performance can also be improved when stages within a supply chain optimise their performance based on the entire supply chain and not based on their individual, local goals.

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