Expanding the Supply Chain Optimization and Strategic Fit Scope



• Intracompany Intraoperation scope: The most limited scope over which strategic fit and optimization can be attempted is one with one operation within a functional area in a company. For example each warehouse of the company has its own goal.

• Intracompany Intrafunctional scope:  If the competitive strategy and supply chain strategy are aligned across all the supply chain activities (supplier strategy, operations strategy, and logistics strategy   ) or functions of the company and optimization is attempted in an integral manner including the raw material inventory, manufacturing operations, finished goods inventory and warehouse, and transportation, the scope is extended to intracompany intrafuctional level.

• Intracompany Interfunctional scope: At this level of scope, the entire company's activities are viewed and modeled as one single system, and optimization is done and company profit is maximized.

• Intercompany Interfunctional scope: The Maximum Supply Chain Surplus view: At this level of optimization and fit making, the entire supply chain (including various different organizations) is modeled as a system and optimization and fit is designed so that supply chain surplus is maximized.

• Flexible Intercompany interfunctional scope: The flexibility refers to dynamic situation. Physically, the participants in the supply chain keep changing, products keep changing, technologies keep changing, facilities keep changing. Mathematically, there are changes in number of variables and variable values. A supply chain capable of optimizing and fit making dynamically over time is a flexible intercompany interfuctional scope supply chain.
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