Somerset Furniture Supply Chain Strategy

Introduction

Organizations use the supply chain approaches to have control over the operations and reduce the costs, as much as possible. Supply chain strategy is often intertwined with the supply chain management but supply chain strategy is broader than the other which should be managed well in order to compete in the market. The implemented strategy is a kind of process that evaluates the cost and benefit that an organization can gain through its operation. Most of the business strategies are formulated with an aim to effective compete and at the same time, achieve the organizational goals. This idea is true with the implementation of supply chain strategy because it includes the analytic and decision making processes.

How to Prepare Supply Chain?

Actually, there are no specific steps regarding the development of a comprehensive supply chain strategy that can be effective in an organization. Every enterprise is uniquely founded and their environments are differs among the others. This is a challenge that the organization should identify. Before the development, the organization should first assess the existing supply chain management or the factors that might affect the creation of the effective supply chain strategy (Rosenfeld, et al., 2000).

Commonly, the organization goes back into the basics of business. Through the identification of the essential offers (products or services), when to offer (timing, seasonal), and where to offer (market, retail) the organization can draw its own competitive plan of supply chain. Having a business strategy is a representation of the overview of the business’s future, and having a supply chain strategy can be mirrored through the actual operations. In the end, the supply chain can meet the objectives of the organization. The supply chain strategy is important towards the operations and execution of the activities. In the continuous practice, the efficiencies are maximized and remain competitive in the market. Having a supply chain strategy creates a strong relationship between the suppliers and customers. And an organization should remember that a well executed supply chain strategy creates a value for the organization’s advantage.

Strategies on Strategies

The organization should firstly look on the obvious and existing process that lies within their supply chain. All of the processes involved in the organization can effectively contribute in the successful creation of the supply chain strategy (UPS, 2005).

Performance Management – this is the process on controlling and execution or implementation of the appropriate processed that allows the organization to realize their goals. A well managed performance works with the organization and became the foundation of the supply chain strategy that is being supported and reinforced.

Cost-Benefit Evaluation Process – can be done periodically or annually depending on how complex the supply chain strategy is. This is the investigation regarding on what strategies, practices or methods, products, technologies, etc. can be implemented in the strategy. Within this process, the organization can also look on the new opportunities that can further position the organization towards its success.

Keeping Communication with the Partners – the supply chain strategy is basically deals with many different entities that can be both internally and externally. It very crucial for the organization to align the supply chain strategy along with the business strategy and both ideas are important to achieve the goals of the organization and foster the long-term success. By keeping the communication with the partners and customers creates an impact in rapid pace in realizing the goals because there is consistency in the process and communication.

Failures

Having the strategy is not an assurance that the organization is strong enough to achieve the success. Most of the businesses fail because of the poor implementation of the strategy. The execution is the most important that contributes in the strategy’s success or failure and not on its strategic planning, changes and development. If a strategy is not delivered according to its commitments and decisions are not comprehensively done, the alignment of the supply chain strategy with the business strategy is meaningless. If the people created the strategy, there should be commitment and responsibilities to eliminate the consequences or challenges that can be the cause of its failure.

Conclusion

Developing an effective supply chain strategy does not end there, there should also include the appropriate efforts and approach to deliver its value. A supply chain strategy is the focus of the organization towards the suppliers and customers and maintaining the good relationship towards the operational excellence of the organization. It might involve risks, but the organization should bring the emphasis on the supply chain strategy to guide the organization, at least, to gain competitive advantage.

Works Cited:

Rosenfeld, S.A., Liston, C.D., Kingslow, M.E., & Forman, E.R., (2000) Clusters in Rural Areas: Auto Supply Chains in Tennessee and Houseboat Manufacturers in Kentucky, Accessed 02 Aug 2010, from http://www.rural.org/publications/Rosenfeld00-11.pdf

UPS, (2005) Supply Chain Strategy: The Importance of Aligning Your Strategies, United Parcel Service of America, Inc., Accessed 02 Aug 2010, from http://www.ups-scs.com/solutions/white_papers/wp_supply_chain.pdf