Supply chain strategies that improve organizational performance and enhance competitiveness.
One supply chain strategy aimed at improving organizational performance and enhancing competitiveness is an adaptive and agile supply chain management strategy. This is a supply chain management strategy where a company is developing its supply chain management to respond to the changing needs in the market. According to Jassbi et. al (2010) “To achieve the competitive edge, companies must align with suppliers and customers to streamline operations, as well as agility beyond individual companies.
Consequently, Agile Supply Chain (ASC) is considered as a dominant competitive advantage” (para. 1). This strategy is usually achieved through the integration of supply chain operations. CISCO systems used this supply chain strategy to achieve success globally because the strategy significantly enhanced the firm’s ability to service its clients. The agility of CISCO’s supply chain allows the company to be resilient. In addition, the supply chain strategy of being adaptive and agile was made possible through the implementation of ERP technology and automation of the supply activities which led to the company’s success.
Another Supply chain strategy is alignment with sustainability. The sustainability strategy is when the company focuses on developing a supply chain that is conscious of environmental needs and eliminating waste. This strategy allows a company to minimize environmental damage and waste in its operations. According to Giannakis & Papadopoulos (2016), “The pursuit of sustainability is increasingly recognised as an effective strategy to deal with some of the contemporary challenges facing global supply chains. It leads to enhanced competitiveness and improved financial performance (Wang and Sarkis, 2013) and generates moral capital for firms to mitigate the consequences of potential business risks (Godfrey et al., 2009). Sustainability can be considered as the degree to which present decisions of organisations impact on the future situation of the natural environment, societies and business viability (Krysiak, 2009). With this broad definition, sustainability strategies should consider the level of future uncertainty and therefore the risks that decisions may impose on the natural and social environments, in addition to the investment costs that are required to make supply chains more sustainable” (para. 2)
Nissan is one of the companies that has managed to achieve a sustainable supply chain strategy. The company adopts this strategy by involving its suppliers and training its staff to create value in the whole supply chain. The company managed to optimize its suppliers as a way of building sustainability. The focus of Nissan is to reduce the levels of emissions and protect the environment through the recycling of used materials. However, the company is still on the path of realizing success in its supply chains. It is a work in progress, but it has allowed Nissan to eliminate waste in its supply chain processes.
Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.
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Respond to the following:
- Choose 2 supply chain strategies aimed to improve organizational performance and enhance competitiveness.
- Explain each strategy and give an example of an organization that has used each type of strategy.
- Was each strategy successful? Why or why not?
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