Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
3 views9 pages

Chapter02 Student

Chapter 2 discusses the integration of supply strategy with organizational objectives, emphasizing how supply chains can align with and support these goals. It outlines key areas of supply strategy, including assurance of supply, cost reduction, and risk management, while identifying three categories of supply risk: operational, financial, and reputational. The chapter also presents a strategic purchasing planning process to ensure that supply objectives effectively contribute to organizational success.

Uploaded by

Chung Huỳnh Phát
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
3 views9 pages

Chapter02 Student

Chapter 2 discusses the integration of supply strategy with organizational objectives, emphasizing how supply chains can align with and support these goals. It outlines key areas of supply strategy, including assurance of supply, cost reduction, and risk management, while identifying three categories of supply risk: operational, financial, and reputational. The chapter also presents a strategic purchasing planning process to ensure that supply objectives effectively contribute to organizational success.

Uploaded by

Chung Huỳnh Phát
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 9

Chapter 2

Supply Strategy

©McGraw-Hill Education. All rights reserved.


Key Questions Addressed in Chapter 2
1. How can supply and the supply chain contribute effectively to organizational
objectives and strategy?

AND

2. How can the organizational objectives and strategy properly reflect the contribution
and opportunities offered in the supply chain?

©McGraw-Hill Education. All rights reserved. 2


Supply Strategy Interpreted in Organizational Strategy
Supply Organizational
Objectives Objectives

Supply Organizational
Strategy Strategy

©McGraw-Hill Education. All rights reserved. 3


Supply Strategy Links Current and Future
Markets to Current and Future Needs
Current Future
Needs Needs

Current Future
Markets Markets

©McGraw-Hill Education. All rights reserved. 4


Normal Organizational and Supply Objectives
Organizational Supply Objectives
Objectives
1. Quality
1. Survival
2. Quantity
2. Growth
3. Delivery
3. Financial
4. Price
4. Environmental
5. Service
©McGraw-Hill Education. All rights reserved. 5
Six Major Supply Strategy Areas
1. Assurance of supply
2. Cost reduction
3. Supply chain support
4. Environmental change
5. Competitive edge
6. Risk management

©McGraw-Hill Education. All rights reserved. 6


Three Categories of Supply Risk
1. Operational:
Risk of interruption of the flow of goods or services

2. Financial:
Risk that the price of the goods or services acquired will change significantly

3. Reputational:
Risk that the organization’s reputation will be harmed by a supply decision
©McGraw-Hill Education. All rights reserved. 7
Strategic Purchasing Planning Process
Restate
organizational goals Identify and
analyze alternatives

Determine supply Determine


objectives to contribute supply strategy
to organizational goals
Review implementation
Isolate factors affecting factors
achievement of
supply objectives Gain commitment
and implement

Evaluate

©McGraw-Hill Education. All rights reserved. 8


Supply Strategy Questions
• What?
• Quality?
• How much?
• Who?
• When?
• What Price?
• Where?
• How?
• Why?
©McGraw-Hill Education. All rights reserved. 9

You might also like