Crafting Business and Supply Chain Strategies

  • David Frederick Ross


The strategic role of supply chain management is summarized as the management of supply chain assets, products, information, and financial flows to maximize company profitability. In more detail, effective supply chain strategies grow business value by seeking to: (1) increase customer responsiveness; (2) increase the efficient use of supply chain resources; and (3) decrease the cost of supply chain operations. These objectives are realized by the design of supply chain strategies that define the physical configuration and capabilities of the supply chain network; how the execution of aggregate and detailed demand and supply planning will maximize business value; and how the daily performance of supply chain operations realizes customer responsiveness, efficiency, and low cost goals. There is little doubt that the success of companies like Wal-Mart,, and Home Depot are due in large part to how their supply chain strategies have shaped their supply channel design, planning, and operations.

Supplementary material

978-1-4899-7578-2_3_MOESM2_ESM.xlsx (15 kb)
Apple’s Supply Chain Strategy Matrix (fig 3.11) (XLSX 14 kb)
978-1-4899-7578-2_3_MOESM3_ESM.xlsx (13 kb)
Supply Chain Strategy Matrix (figure 3.10) (XLSX 13 kb)
978-1-4899-7578-2_3_MOESM4_ESM.xlsx (14 kb)
Table 3.1 Strategic Framework (XLSX 13 kb)
978-1-4899-7578-2_3_MOESM5_ESM.xlsx (14 kb)
Table 3.2 VAR – Sales and Product Exposure (XLSX 13 kb)
978-1-4899-7578-2_3_MOESM7_ESM.pptx (2.5 mb)
Chapter 3 (PPTX 2512 kb)


  1. 1.
    This concept of the external business environment was popularized by Moore, James F. 1996. The death of competition. New York: HarperCollins.Google Scholar
  2. 2.
    The seven external environmental factors are drawn from Thompson, Arthur A., A. J. Strickland, and John E. Gamble. 2005. Crafting and executing strategy: Text and readings, 14th ed, Chapter 3. New York: McGraw-Hill Irwin.Google Scholar
  3. 3.
    See Porter, Michael E. 1980. Competitive strategy: Techniques for analyzing industries and competitors, Chapter 1. New York: Free Press.Google Scholar
  4. 4.
    This process is detailed in Ibid., Chapter 7.Google Scholar
  5. 5.
    All references to the APICS Dictionary in this chapter are from the 14th edition (2013).Google Scholar
  6. 6.
    Porter, Michael E. 1985. Competitive advantage, 37–43. New York: Free Press.Google Scholar
  7. 7.
    These company vision statements have been gathered from Thompson, et al., 19.Google Scholar
  8. 8.
    Hayes, Robert H., and Steven C. Wheelwright. 1984. Restoring our competitive edge, 25. New York: John Wiley & Sons.Google Scholar
  9. 9.
    Thompson, et al., 27.Google Scholar
  10. 10.
    Kotler, Philip. 1988. Marketing management, 6th ed, 33. Englewood Cliffs: Prentice Hall.Google Scholar
  11. 11.
    Porter, Competitive strategy, 35–40.Google Scholar
  12. 12.
    See the analysis in Porter, Competitive advantage, 3.Google Scholar
  13. 13.
    Lee, Hau, Kevin O’Marah, and Geraint John. 2012. The chief supply chain officer report. SCM Word White Paper, 14–19.Google Scholar
  14. 14.
    Hayes and Wheelwright, 395–408.Google Scholar
  15. 15.
    This section references the analysis of operations strategy found in Slack, Nigel, Stuart Chambers, Robert Johnston, and Alan Betts. 2009. Operations and process management, 2nd ed, 38–40. New York: Prentice Hall.Google Scholar
  16. 16.
    For example, Slack, Nigel, and Michael Lewis. 2003. Operations strategy, 19. Upper Saddle River: Prentice Hall, define operations performance objectives as consisting of quality, speed, dependability, flexibility, and cost. These attributes could easily applied to performance objectives of supply chains.Google Scholar
  17. 17.
    The SCOR: Supply Chain Operations Reference Model, Version 11.0 (Supply Chain Council, 2013), 1.2.4–1.2.5.Google Scholar
  18. 18.
    Hill, Terry. 1994. Manufacturing strategy, 2nd ed, 43–76. Boston: Irwin-McGraw Hill.Google Scholar
  19. 19.
    For more on the concepts of automation and networking, see Ross, David Frederick. 2011. Introduction to supply chain management technologies, 2nd ed, 37–41. Boca Raton: CRC Press.Google Scholar
  20. 20.
    The concept of a strategic attribute and performance driver matrix is adapted from Slack and Lewis, 56–59.Google Scholar
  21. 21.
    The concept of strategic fit discussed in this text has been adapted from Slack and Lewis, 59–60 and Chopra, Sunil, and Peter Meindl. 2010. Supply chain management: Strategy, planning, and operations, 4th ed, 21–34. Upper Saddle River: Pearson/Prentice Hall.Google Scholar
  22. 22.
    These supply chain strategy performance metrics have been abstracted from The SCOR: Supply Chain Operations Reference Model, 2.1–2.5.14.Google Scholar
  23. 23.
    Kaplan, Robert S., and David P. Norton. 1992. The balanced scorecard: Measures that drive performance. Harvard Business Review 71–79; Kaplan, Robert S., and David P. Norton. 1996. The balanced scorecard: Translating strategy into action. Boston: Harvard Business School Press; and, Kaplan, Robert S., and David P. Norton. 2001. The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Boston: Harvard Business School Press.Google Scholar
  24. 24.
    Brewer, Peter C., and Thomas W. Speh. 2001. Adapting the balanced scorecard to supply chain management. Supply Chain Management Review 5(2):48–56.Google Scholar
  25. 25.
  26. 26.
    See the excellent summary in the Kinaxis white paper entitled “Supply Chain Risk Management: Knowing the Risks – Mitigating and Responding for Success,” Kinaxis Corporation 2012, 4–5.Google Scholar
  27. 27.
    Reference Wright, Jonathan. 2013. Taking a broader view of supply chain resilience. Supply Chain Management Review 17:25–31.Google Scholar
  28. 28.
    Reference the classic definition in Chopra, Sunil, and Manmohan S. Sodhi. 2004. Managing risk to avoid supply-chain breakdown. Sloan Management Review 46(1):53–61.Google Scholar
  29. 29.
    These points are found in Wright, 31.Google Scholar

Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • David Frederick Ross
    • 1
  1. 1.APICSChicagoUSA

Personalised recommendations