2.6 Conclusion

Chapter 2 of the textbook provides a comprehensive understanding of supply chain strategy, its evolution, and the various models and approaches used in its formulation. It begins by defining supply chain strategy as a plan that guides the management of all activities involved in sourcing, procurement, conversion, and logistics management. The chapter emphasizes the importance of aligning the supply chain strategy with the organization’s overall strategy to achieve a competitive advantage.

The chapter then delves into the evolution of supply chain strategy, highlighting the shift from a siloed approach to a more integrated one. It discusses the importance of both vertical and lateral integration in managing supply chains and the role of environmental and internal scanning in designing supply chain strategies. The chapter also introduces the concept of competitive priorities and the need for continuous review and adjustment of supply chain strategies.

The chapter further explores various models in supply chain strategy, including Skinner’s model, Fisher’s model, and Chopra’s model. Each model is discussed in detail, providing insights into their applications and implications in supply chain management. The chapter concludes with a discussion on global supply chain strategies and the need for strategic metrics for continuous monitoring and updating of supply chain strategies.

Studying this chapter will equip you with a solid understanding of supply chain strategy, its importance, and how it is formulated and implemented. This knowledge is crucial, not just for those specializing in supply chain management, but for anyone aiming to excel in today’s complex and dynamic business environment. The concepts and models discussed in this chapter will provide you with the tools and frameworks to design effective supply chain strategies, giving you a competitive edge in your professional life.