2
-
Opera/ons
and
Supply
Chain
Strategy
Opera,ons
Management
in
the
Supply
Chain
by
Roger
G.
Shroeder
6th
Edi/on
McGraw-Hill
2013
Wiley
2010
1
Opera/on
Strategy
Is
a
consistent
paEern
of
decisions
for
opera/ons
and
the
associated
supply
chain
that
are
linked
to
the
business
strategy
and
other
func/onal
strategies,
leading
to
a
compe//ve
advantage
for
rm
What
Is
a
Supply
Chain?
Flow
of
products
and
services
from:
Raw
materials
manufacturers
Intermediate
products
manufacturers
End
product
manufacturers
Wholesalers
and
distributors
and
Retailers
Connected
by
transporta/on
and
storage
ac/vi/es
Integrated
through
informa/on,
planning,
and
integra/on
ac/vi/es
Cost
and
service
levels
supply
chain
The
network
of
manufacturing
and
service
opera/on
that
supply
one
another
from
raw
material
through
produc/on
to
the
ul/mate
customer.
The
supply
chain
consists
of
the
physical
ow
of
materials,
money,
and
informa/on
along
the
en/re
chain
of
purchasing,
produc/on
and
distribu/on.
Ac/ve
management
of
supply
chain
ac/vi/es
and
rela/onships
to
maximize
customer
value
and
achieve
a
sustainable
compe//ve
advantage
The
Value
Chain
and
Its
Support
Func/ons
Exhibit 1.10
The
McGraw-Hill
Companies,
Inc.,
2003
Fundamentals
of
Opera/ons
15
Management
4e
Strategies
for
Compe//ve
Advantage
Dieren/a/on
a
unique
and
frequently
innova/ve
new
product
or
service
Cost
leadership
low
cost
in
commodity
markets
Focus
focus
refers
to
the
geographical
or
product
por^olio
being
narrow
or
broad
in
nature
Michael
Porter
(1980)
Response
rapid
response
Strategy
Ac/on
plan
to
achieve
mission
Func/onal
areas
have
strategies
Strategies
exploit
opportuni/es
and
strengths,
neutralize
threats,
and
avoid
weaknesses
Opera,on
Strategy
Process
Corporate
and
Business
Strategy