MIT Supply Chain Strategy is an independent newsletter published by IOMA with the mission to drive competitive advantage by linking corporate strategy and supply chain management. Its 12 issues each year shepherd senior executives from a broad cross section of industries and corporate disciplines through developing a strategy that defines how their supply chain should work.
The management of a company's lifeline— its supply chain—underpins its competitiveness. Organizations that understand this, and fuse corporate strategy and supply chain management to create a strategic asset become market leaders. Yet many enterprises—and otherwise sage business leaders—still fail to make this crucial connection. Supply Chain Strategy exists to help both leaders and laggards bridge the gap between supply chain professionals and the boardroom.
Contrary to popular belief supply chain strategy is not some static amalgamation of tasks and tactics designed to make day-to-day operations more efficient; it is a "living" entity that goes through periods of growth, decline, and rebirth. But many companies are unaware of which phase their supply chain strategy is in, even when it is in steep decline.
Supply chain managers naturally want to get the best price when buying logistics services, particularly when such services represent a high proportion of total costs. Volatile fuel prices and the economic downturn are adding to the pressure to trim logistics budgets. But how far can managers keep a lid on prices without undermining the service elements that add value and, ultimately, cut overall costs?
Apart from keeping a nervous weather eye on the stock market, how are supply chain managers reacting to the global economic meltdown?
What makes a productive commercial relationship between buyer and supplier tick? Given the fraught market conditions in which both parties now operate, it’s a question that supply chain managers should be interested in.
The global credit crisis is clogging international trade arteries in unfamiliar ways. You might not be well-acquainted with the financial plumbing that is failing, because just like pipe systems in buildings, it doesn’t get much attention until something goes wrong. Still, knowing why blockages are now occurring might help you to understand the supply chain implications.
MIT-CTL Supply Chain Strategy is part of...
Corporate Financial Management
