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Supply Chain Drivers

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Aim To demonstrate how supply chain drivers are beneficial in achieving supply chain performance Instructional Objectives After completing this chapter, you should be able to: • List the drivers of a supply chain • Explain the role of each driver in achieving trade-off between customer service and cost Learning Outcomes At the end of this chapter, you are expected to: • Identify the various drivers of a supply chain • Demonstrate the importance of each driver in achieving trade-off between customer service and cost Driving Efficiency at General Motors de Mexico General Motors de Mexico (GMM) is a subsidiary of General Motors (GM) that works with more than 1,700 suppliers that produce approximately 13,000 parts a day. From railcars to chartered…show more content…
Exhibit 1.2.1 explains clearly about the role of information, that is one of the cross-functional drivers in improving supply chain efficiency. It describes how the interaction of various drivers such as transportation, inventory, sourcing and information influence the supply chain performance in terms of efficiency and responsiveness. Let us discuss how the various supply chain drivers impact the performance of the supply chain and its role in decisions related to supply chain design, planning and operations in the following sections. Furthermore, it is discussed that how the trade-off between customer service and cost is achieved with the help of decisions related to supply chain…show more content…
A company’s competitive strategy is its plan of satisfying a set of customer needs through its products or services. For example, Dell's competitive strategy is providing a customized variety of products at a reasonable cost. Competitive strategy is based on customer's priority on product cost, delivery time, variety and quality. In order to execute this competitive strategy, decisions have to be taken at each stage of the supply chain that defines the supply chain strategy. For example, supply chain strategy selects from where and how, how much, raw materials to be procured, mode of transport to and from the company, distribution of the products and more. Moreover, supply chain strategy comprises of design decisions regarding inventory, facilities, transportation and information flows. Supply chain strategy may also be known as logistics strategy, operations strategy, and supplier
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