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Steps to coordinate supply chain with the right corporate strategy

Your Supply Chain Planning needs to compete for the same way your company does. Supply chains cannot be measured or designed in isolation of the corporate strategy.<br>

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Steps to coordinate supply chain with the right corporate strategy

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  1. Steps to coordinate supply chain with the right corporate strategy The supply chain is different for different managers. Buying agents in Delhi attempt to build the most efficient supply chain, regardless of whether their market strategy is to compete on price. Optimizing cost and inventory may come at the expense of flexibility, lead-times, and risk. Your Supply Chain Planning needs to compete for the same way your company does. Supply chains cannot be measured or designed in isolation of the corporate strategy. There are certain steps to align your supply chain with your corporate strategy: 1. Define and communicate a clear corporate strategy One of the biggest failure points in aligning strategy is when the supply chain organization does not know what to align with. Strategies prioritize all the market requirements and factors on which participants compete. A corporate strategy needs to define how you are going to be different and better than your competitors. 2. Identify the areas of your corporate strategy Buying agents in Delhi must connect the dots between strategic goals and how those get delivered by the company. This process defines your good supply chain needs, and it allows you to prioritize supply chain objectives. 3. Structure your supply chain to optimize the strategic goals In this, you can locate the elements of supply chain design like Supply chain network, supplier selection, and business terms, locations, inventory, and planning policy, organizational structure. Supply chains are optimized for cost efficiency. Your organization and the skill set of your people will be different, too. 4. Align incentives end to end Internal performance evaluations and bonus structures must match with the aligned metrics. Supplier performance management and business models should align the incentives of suppliers. Build a robust S&OP process and later drive your sales and marketing teams with objectives. The common failure of sales and marketing have no incentive to control inventory.

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