DELL

CEO

DeLL CEO

Michael Dell

Strategy
.Corporate Strategy .Product Development Strategy .Supply Chain or Operations Strategy

Strategy
 Information

Technology Strategy  Finance Strategy  Human Resources Strategy

Corporate and Functional Strategies

Corporate Competitive Strategy Product Development Strategy Supply Chain or Operations Strategy Marketing and Sales Strategy

Information Technology Strategy Finance Strategy Human Resources Strategy

the Corporate Strategy

Responsiveness (Reliability; Quickness; Flexibility; e.g., Dell, Overnight Delivery Services)

Competitive Advantage through which the company market share is attracted Cost Leadership (Price; e.g., Wal-Mart, Southwest Airlines, Generic Drugs)

Differentiation (Quality; Uniqueness; e.g., Luxury cars, Fashion Industry, Brand Name Drugs)

Strategy and Issues during a Product s Life CYCLE

Introduction
Best period to increase market share R&D engineering critical

Growth
Practical to change price or quality image Strengthen niche

Maturity
Poor time to change image, price or quality Competitive costs become critical Defend market position

Decline
Cost control critical

Sales

Time
Frequent product and process changes Short production runs High production costs Limited models Attention to quality Forecasting critical Products and process reliability Increase capacity Shift towards product focus Enhance distribution Standardization minor product changes Optimum capacity Process stability Long production runs Little product differentiation Overcapacity in the industry Reduce capacity and eventually prune line to eliminate items not returning good margin

zone of strategic fit

Responsive Supply Chain

Responsiveness Spectrum

Efficient Supply Chain Certain Demand Implied Uncertainty Spectrum Uncertain Demand

Implied Demand Uncertainty: The uncertainty that exists due to the portion of Demand that the supply chain is required to meet.

Supply Chain Strategy

Corporate Strategy

Supply Chain Strategy Efficiency Responsiveness

Facilities

Inventory

Transportation

Information

Market Segmentation

Current Trends and Challenges in the SCM

 Increasing variety of products  Decreasing product life cycles  Increasingly demanding customers  Fragmentation of Supply Chain Ownership: vertical vs. virtual integration  Globalization and Market Segmentation 

Closed Loop SC
Production Distribution Consumption Retrieval

Disposal

Disassembly/ Reprocessing

Reverse Logistics and Re-manufacturing network