g

1. DELL

3. CEO

4. DeLL CEO
Michael Dell

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

7. Strategy
 Information
Technology
Strategy
 Finance Strategy
 Human
Resources
Strategy

8. Corporate and Functional
Strategies
Corporate Competitive Strategy
Product Supply Chain Marketing
Development or Operations and Sales
Strategy Strategy Strategy
Information Technology Strategy
Finance Strategy
Human Resources Strategy

9. 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)

10. Strategy and Issues during a
Product’s Life CYCLE
Introduction Growth Maturity Decline
• Best period to •Practical to •Poor time to •Cost control
increase market change price or change image, price critical
share or quality
quality image
•R&D engineering •Strengthen •Competitive costs
critical niche become critical
•Defend market Sales
position
Time
• Frequent product •Forecasting •Standardization - •Little product
and process critical minor product differentiation
changes •Products and changes •Overcapacity in
•Short production process reliability •Optimum capacity the industry
runs •Increase capacity •Process stability •Reduce capacity
•High production •Shift towards •Long production and eventually
costs product focus runs prune line to
•Limited models •Enhance eliminate items
•Attention to distribution not returning
quality good margin

11. “zone of strategic fit”
Responsive
Supply Chain
Responsiveness
Spectrum
Efficient
Supply Chain
Certain Implied Uncertain
Demand Uncertainty Demand
Spectrum
Implied Demand Uncertainty: The uncertainty that exists due to the portion of
Demand that the supply chain is required to meet.

12. Supply Chain Strategy
Corporate Strategy
Supply Chain Strategy
Efficiency Responsiveness
Market
Facilities Inventory Transportation Information
Segmentation

13. 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
Disassembly/ Reverse Logistics and
Disposal
Reprocessing Re-manufacturing network