ELEMENTS OF SUPPLY CHAIN STRATEGY PLANNING THE NEED FOR PEOPLE & CHANGE MANAGEMENT Diminishing brand loyalty Service conscious with very high expectations Better informed customers with increased choice Internet commoditisation Disintermediation Environmental (natural) concerns Knowledge, Skills, Experience, Leadership, Training, Mentoring, Learning, Continuing Professional Development Capital intensive or not Public or Private ownership Assets owned or leased or hired or 4PL Gearing Cash rich or poor Cash generative THE ORGANIZATION Culture Structure Capital funding Type: hierarchy/sole trader/franchise/etc. Geographical location Objectives Performance measures Product life cycle Inventory position by ABC and geography Level of promotional activity Inventory range & depth Shelf life: cut flowers or steel Home delivery Supplier collections “Grey” transport 4PL 3PL or in-house PRODUCT FEATURES Size Weight Fragility Dangerous Ambient Chilled/ Frozen Digital (music, films, training, etc) Raw Materials Lead times Geographical location Product characteristics Competitive Environment Supplier Power THE ORGANIZATIONS BUSINESS STRATEGY Depot location & size Hub + spoke or regional Disintermediation Customer Power CUSTOMER SERVICE PROMISE Distribution network Modal choice: Rail/road/sea/air/pipelines/ Internet (digital products) STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Global Continental INDUSTRY CHARACTERISTICS National Regional SOCIAL TECHNOLOGICAL ECONOMIC ENVIRONMENTAL POLITICAL World trade situation Quality of transport infrastructure Service Levels Channels to market Wholesale/merchants Retailers Omnichannel Direct: B2B/B2C Barriers to entry Ease of substitution Disruptive innovation MANUFACTURING Geographical location Production planning & control (push or pull) Complexity Access to skilled labour Emerging or declining Level of technology used high or low Access to raw materials Certainty of supply Level of automation/robotics CUSTOMERS & MARKETS Products or services Needs & wants Unique selling propositions (USP) Segments Brands & loyalty Commodity Growing/declining market New product development Social trends REVERSE LOGISTICS Product recall Faulty goods End-of-life products Returned packaging Legal framework Re-use/ recycle/rework Unwanted goods Receiving/sorting/segregation The “circular” economy RAW MATERIALS Number of suppliers Geographical location Physical characteristics – weight /volume Supplier status: owned /adversarial/partners Capital requirements Trading blocs: NAFTA/EU etc. Monopoly/ duopology/ oligopoly Political Situation Competitors New entrants Less obvious competition © PHIL COURCHER 2003 THE NEED FOR INFORMATION AND COMMUNICATION Supply Chain Planning Enterprise Resource Planning (ERP) Integration of information, communications and mobility Pipeline visibility Speed of response and order fulfilment Systems compatibility Advanced Planning Systems Cloud computing-Software as a Service (SaaS) Big data analysis Artificial intelligence (AI) COMPETITOR INTELLIGENCE Benchmarking Reverse engineering Routing & Scheduling Fleet management Warehouse management Inventory management Track & trace Material availability/alternative sources Purchase orders E-Procurement Supplier Relationship Management (SRM) Market research Sales figures and electronic point of sales (EPOS and mPOS) Customer Relationship Management (CRM) Production planning & control systems Work in progress(WIP) © Phil Croucher 2003 (Revised 2017)