New Strategic Tools for Supply Chain Management

Abstract

Intense global competition has created a highly demanding customer. To serve his needs for highvariety, low cost, sound quality and easy availability, organisations are looking beyond their own boundaries to the management of their supply chains. In this they have been inspired by the typical Far Eastern, and the very best Western, practice. But supply chain management is still a hope not a reality for many companies. On the one hand there is an array of "panaceas" on offer for our "sick" businesses; new technology, computer integrated manufacturing, the Just‐in‐Time approach, total quality management, and more besides. On the other hand supply chain management has few specific tools of its own. To the manager busy holding on to his market share it is difficult to see where to start the process of making his operation more competitive. A three‐stage approach to help companies see just which actions are likely to get the supply chain into better competitive shape is proposed. Also introduced are two simple graphical tools to help management develop a strategy for enhanced supply chain effectiveness: the pipeline map and the supplier relationship grid.

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