Formulating a Supply Chain Strategy

Abstract

The concept of strategy has been widely used but remains essentially a ‘formula or a plan to compete effectively in a marketplace’. To be of use a strategy requires direction (vision and objectives) and resources. However, if we are to be sure of successful implementation, the organization’s strategy should ‘fit’ the profile of the marketplace, otherwise inappropriate responses will follow. Specifically, the logistics strategy should integrate with both the corporate and marketing strategies. It follows that its success will be measured within the context of the performance of both of these. Changes made to either will require matching changes to the logistics strategy. This chapter considers the process involved in developing a logistics strategy. It assumes an understanding of the overall process of determining corporate strategy, and accordingly concentrates upon the more important issue of developing an integrated logistics strategy. The chapter also considers the impact of changes in corporate strategy on logistics strategy.