Question

Many organisations are faced with changes in the environment in which they operate. Customers are more geographically dispersed and this has had an impact on the strategy followed by organisations. Your organisation has decoded to look at its organisation strategy and has requested your input in developing and implementing a supply chain and logistics strategy. Prepare a report detailing the levels of strategy in an organisation and the process of developing and implementing a supply chain and logistics strategy. Use a diagram to illustrate your answer.

Answer 1

Levels of Strategy

• Corporate Level
• Business Level
• Functional Level

Corporate Level

Corporate level strategy defines the business areas in which your firm will operate. It deals with aligning the resources deployment across a diverse set of business areas, related or unrelated. Strategy formulation at this level involves integrating and managing the diverse businesses and realizing synergy at the corporate level. The top management team is responsible for formulating the corporate strategy. The corporate strategy reflects the path toward attaining the vision of the organisation.

Business Level

Business level strategies are formulated for specific strategic business units and relate to a distinct product-market area. It involves defining the competitive position of a strategic business unit. The business level strategy formulation is based upon the generic strategies of overall cost leadership, differentiation and focus.

Functional Level

Functional level Strategies relate to the different functional areas which a strategic business unit has, such as marketing, production and operations, finance, and human resources. These strategies are formulated by the functional heads along with their teams and are aligned with the business level Strategies. The strategies at the functional level involves setting up short term functional objectives, the attainment of which will lead to the realization of the business level strategy.

Supply chain

Plan

This is the Strategic portion of the supply chain management. One needs a strategy for managing all resources that go towards meeting customer demand for a product or service. This may include developing a set metrics to monitor the supply chain. So that it is efficient, cost less and delivers high quality and value to customers in the most cost effective manner.

Source

This involves developing a set of pricing, delivery and payment process with suppliers and metrics for monitoring and improving the relationships. This also involves putting together processes for managing the inventory of goods and service from suppliers including receiving shipment verifying them, transferring them to manufacturing facilities and authorising supplier payment.

Make

This is the manufacturing step. This involves making schedule for activities necessary for production, testing, packaging and preparation of delivery.

Deliver

This is referred to as logistics. This involves coordination of the receipt of orders from customers, developing a network of warehouses, picking carriers to get products to customers and setting up an invoicing system to receive payments.

Reverse Flow

This refers to the reverse flow of goods from customers back to the manufacturer. This involves creating a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

Logistics Strategy

• ​Use volume to leverage price
• Define what you are trying to accomplish
• Focus on your competencies
• Utilize the technology available
• Fine tune your warehouses and processes
• Stay away from decision making
• Focus on your customers
• Conduct risk and resilience assessment
• Segment your products and customers
• Learn from your mistakes (If it's helpfull, a thumbs up, pls)