Aligning your supply chain with business strategy
"Supply Chain Roadmap" method allows to characterize, evaluate and reformulate supply chain strategy, baed on the "map of supply chain strategy", which allows to understand supply chain under three main perspectives.
Traditional approaches to formulating and validating supply chain strategy have not been consistently successful. This is largely because they have not paid enough attention to the connections and combinations among key drivers throughout the value chain, or to their alignment with the framework of industry and with each organization’s competitive positioning.
In order to address this shortcoming, I have conducted an analysis of the most widely recognized theories and case studies about supply chain strategy. My analysis has identified a set of common configurations that reveal key drivers of supply chain strategy and explain how these can be aligned in a coherent strategy. Those findings are summarized in a strategy formulation model called the “Supply Chain Roadmap”, which provides:
• A compilation of the most relevant key drivers of a supply chain strategy
• An understanding of the interrelation of these key drivers with an industry’s competitive framework and a business’s competitive positioning
• The characteristic profile of six supply chain archetypes: efficient, fast, continuous-flow, agile, custom-configured, and flexible
“Supply Chain Roadmap” is not a new type of supply chain strategy, “Supply Chain Roadmap” is a method supported in the most important and recognized theories and practices about supply chain strategy, its contribution resides in the development of a simple and easy method to characterize and identify the relevance of the supply chain strategy with business framework of an organization by a four-step method: Scope, Understand, Evaluate and Redesign.
“Supply Chain Roadmap” is not a quantitative method with a unique or predefined solution, “Supply Chain Roadmap” is a method where supply chain strategy could be gathered and reviewed in a systematic and organized approach supported by several team discussions where is analyzed current supply chain strategy compared against reference supply chain archetypes, in order to define gaps and/or inadequate alignment between supply chain strategy and business strategy.
A perfect fit of the supply chain strategy is achieved by:
- Alignment with the business strategy
- Right synchronization of tactical factors of the supply chain
- A compilation of the most relevant tactical factors of the supply chain strategy
- The characteristic profile of the strategic and tactical factors of six generic supply chains
- Consistency among strategic and tactical factors for each generic supply chain
- Understanding of the interrelation of these supply chains with the competitive environment of the industry and the competitive positioning of the business.
Supply Chain Roadmap allows to characterize your supply chain, contrast it with six generic supply chains, identify gaps and defining the roadmap to improve alignment and synchronization of the supply chain.
When you use our "Toolbox", you'll obtain inmediatly (a downloadable pdf file):
- Your own "Supply Chain Strategic Map", where you'll find the description of the factors of your supply chain strategy.
- An "Gap Analysis Chart", which allows you to understand the recomended generic Supply chain for your business and the gaps between this and your current supply chain strategy.
The Toolbox is an academic and limited version of the full solution of the Supply Chain Roadmap method, which is available on the book.
Supply Chain Roadmap's book contains all the details required for understanding the principles behind the method, and the "how to" apply in our organization.
Book is useful for supply chain professionals, academics, and students, and all those interested in improving the competitiveness of organi-zations.
Supply Chain Frontiers #49 :: Six Supply Chain Options for Strategic Alignment
Published: May 2013
Supply Chain Frontiers issue #49
Aligning supply chain strategy with a company’s business model is an effective way to improve competitiveness, but which strategy is the best fit?
“Hernán David Perez’s work is a great example of the down-to-earth applied research we expect from our GCLOG students during the program,” said Dr. Edgar Blanco, Research Director, MIT Center for Transportation & Logistics (MIT CTL), and Executive Director, MIT SCALE Latin America. “We are very excited to see the potential impact of his work in Latin America.”
1Q 2013 issue
“We have used Supply Chain Roadmap Web App in our Logistics and Supply Chain Management Graduate Class to analyze good practices of supply chain management. The Web App supported the analysis of supply chain strategies and led to fruitful discussions in class on which strategies to adopt and which to avoid in different supply chain environments.”
Seyda Serdar Asan, Dr.-Ing.
Istanbul Technical Univ.
Faculty of Management
"I just finished reading the article ‘Supply chain strategies: Which one hits the mark?’ and I want you to know that I loved the article and I think you did an excellent job. I wish I would have had you as a professor while I was earning my Master of Science degree in Supply Chain Management.."
Brittain Ladd Deloitte & Touche LLP
"Really impressed with how logical and practical the tool is. As a supply chain consultant, I see many ways I can use this, working with
customers and their supply chains."
"I just read your article "Supply chain strategies: Which one hits the mark?" In the CSMP's Supply Chain Quarterly and I think it is an excellent job!
You performed a review very comprehensive and integraste in a way that seems very logical concepts of supply chain strategy"
Manuel Farias Logistics and Supply Chain Professor at ITESM Campus Monterrey
"Supply Chain Roadmap SCRM" is the result of my teaching experience of several years, and my professional experience in management positions in the supply chain in multinational companies in several sectors such as automotive, consumer, B2B and retail, which were compiled in an entrepreneurship project (currently ongoing) developed in University of La Sabana (Bogota, Colombia) and MIT (Boston, USA).
Our focus is to share "SCRM" method and our experience with organizations worldwide, creating a community of users, which contribute with their experiences and use of our "Toolbox", to improve the algorithm that supports the method.