How Significant Is the Supply Chain Becoming in the Development of an Operations Strategy? Essay
Complexity, dynamics and predictability are main features in today’s business environment; therefore operational managers face major challenges in business - How Significant Is the Supply Chain Becoming in the Development of an Operations Strategy? Essay introduction. In this regard, it is important for operational managers to asset and expands the activities involved in creating and sustaining competitive advantage through the formulation and strategy development processes. One of the new models in “supply chain management” is Operations Management, which includes in today’s network economy activities which in turn is one of the requirements for the managers ,companies and researchers in the industrial economy.
Lee, L. Hau. (2002). In today’s competitive environment Operations strategy together with Operations Management are essential for an organization. So in order to properly fulfill the organization’s priorities and see the mission entrusted, it’s necessary to focus on compatibility and performance consistency within the organization; supply chain and performance between the organizations. As Tan, K. C. 2001) reported, supply chain management expresses both theoretical and practical development of two key areas namely, purchasing and supply management , transportation and distribution management along with suppliers and customer activities, which all can lead to large strategic approach in field of operations management and related areas in supply chain management. According to SCOR (Supply Chain Operations Reference Model), the supply chain management processes includes: planning and scheduling delivery, manufacturing, resource allocation and plan.
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Areas of operations strategy in the supply chain, contains sourcing, manufacturing, delivering and planning. However, Hayes et. al expresses co- operations strategy as a series of goals, policies, and self-imposed restrictions that will determine the completion and availability of the resources in the operation areas. Hayes, Robert etal. (2005). Ketchen Jr. , D. J. , Giunipero, Larry C. (2004) shows that nowadays, the competition between enterprises has been promoted to competing between supply chains.
Because as mentioned earlier, one of the characteristics of the operation strategy in new economy environment is business activities within a supply chain network due to achieving common objectives and meet customer expectations. In such a situation, a new level of competitive analysis for strategic management appears. Concept of models and SCM are developing recently, though an accepted pattern approved by experts in a supply chain operation strategy has not provided. Such patterns can be found in Fisher and SCOR models, Supply Chain Council (2003), Fisher, M.
L. (1997) and other mixed models, such as’ Lean, Agile, and “Leagile” Supply Chain Strategies. Stratton, R. , Warburton, R. D. H. (2003). Fisher model,, with a focus on product qualities, introduce a model for selecting the appropriate type of products in a supply chain strategy. On the other hand, SCOR model is a reference model in implementing operations strategy and focuses more on the application. Fisher, M. L. (1997). In the paper written by David J. Ketchen Jr. , Larry C.
Giunipero with a major focus on ‘The intersection of strategic management and supply chain management’ authors explain the relationship between SCM and strategic management and how they support each other in a business world. Paper mostly reviewed ideas from other articles and authors tried to describe the subject by covering models from the other papers. There are two main tables in the paper which I think is an effective summary of how SCM can inform on strategic management and vice versa. In conclusion the paper gives us a view on the respective subject by comparing different ideas. For referencing authors used ‘’author & date’’ style which is acceptable in most of scientific papers.
1. Lee, L. Hau. (2002). “Aligning Supply Chain Strategies with Product Uncertainties”, California Management Review, Vol. 44, No. 3, PP 105-119. 2. Tan, K. C. (2001). “A Framework of Supply Chain Management Literature”, European Journal of Purchasing & Supply Management,Vol. 7, PP 39-48. 3. Hayes, Robert etal. (2005). Operation, Strategy and Technology: Pursuing The Competitive Edge, John Wiley & Sons. 4. Ketchen Jr. , D. J. , Giunipero, Larry C. 2004). “The Intersection of Strategic Management and Supply Chain Management”, Industrial Marketing Management, Vol. 33, PP 51-56. 5. Supply Chain Council (2003). Supply-Chain Operations Reference-Model: Overview of SCOR Version 6. 0, http: //www. Supply-Chain. org 6. Fisher, M. L. (1997). “What is the Right Supply Chain for your Product? ”, Harvard Business Review, March-April, PP 105-116. 7. Stratton, R. , Warburton, R. D. H. (2003). “The Strategic Integration of Agile and Lean Supply”, International Journal of Production Economics, Vol. 85, PP 183-198.