SCC Joint Goal Planning: Align with Business Strategy

Customer Service and Corporate Strategy are key functional drivers of supply chain strategy. Collaboration efforts often do not succeed because vital long-term details are ignored. Therefore, short- and long-term business strategies should also be factored while evolving supply chain goals to achieve business objectives.  After deciding on the right  supply chain  capability for the business the supply chain performance vis-a-vis capabilities required for achieving the business goals  should also be determined and  incorporated into the  collaborative SCM goals. Business strategy in terms of the defined strategic focus areas should be mapped in strategic focus matrix to incorporate business objectivity in supply chain collaboration. For instance, if the business goal is to achieve cost leadership through improving cost structures, then strategic focus areas include: inventory cost (IC), production cost (PC) and logistics cost (LC). Applying this to the strategic focus matrix extended SCM Goals would be as shown below.
 
Strategic Focus Matrix: Aligning Business Strategy with SCM
Evolved objectives should be mapped to existing supply chain capabilities across the chain to determine the exact capability gap.  Level 1 Metrics of supply chain operation reference (SCOR) model offers a scientific approach to assess the current supply chain performance and hence the required capabilities for achieving SCM goals. 

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