Swot Analysis Of Supply Chain Strategy
5. STRENGTHS & WEAKNESSES OF THE CURRENT SCM AND INITIATIVES FOR THE FUTURE
For overall evaluation of supply chain management, the core disciplines as described by Cohen (2004) will be evaluated. Those core disciplines are:
To view supply chain as a strategic asset (designed around a defined basis of competition to enable overall business strategy).
To develop end-to-end processes and systems to interface efficiently with the rest of the organization, to design the organization and necessary skills required.
To build the right collaborative model based on the understanding of core competences and selection of right partners.
To maximize focus and profitability.
And last but not at least, to use metrics to measure the health of the
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The strengths and weaknesses are mapped in Table 5-2.
Table 5-2: Strengths and Weaknesses of Omnia Supply Chain Strategy by Main Criteria’s
Key criteria's for good strategy Strengths Weaknesses
Aligned with business strategy • Basis of competition are defined • Supply chain strategy could be more differentiated depending on the basis of competition for different markets and different products
Aligned with customer needs • Overall market wining criteria is defined in terms of service level • Market winners are not clearly defined for certain market, different product groups
• They are not defined according to type of demand for different product groups (innovative products requires responsive supply chain, and functional products efficient supply chain)
Aligned with power position • Bundling of purchasing volume with other Omnia Segments
• Developed distribution channels to assure global presence
• Strong relationships with key customers • Relationships with key suppliers could be stronger
• Segmentation of different customers would be needed for further development of collaboration with Key
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Another dimension is also related to alignment of strategies to customer needs. Here market winners for certain customer segments are not clearly defined; they might also be different for different products and the type of demand for those products. As the Omnia brand has a strong position on the main mature markets and a weaker brand position on emerging markets, this should also result in a clear collaboration strategy. On the markets where OMNIA has a strong position, the distribution channels can be more direct while for emerging markets, the knowledge of local partners can be used to penetrate the new markets
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