Monday, October 23, 2006

Management Lite & Ezy 11 – Supply Chain and Products

In Management Lite & Ezy 10, we learned that a supply chain can be either physically efficient or market responsive. Which type should we have for our firm? According to Fisher (1997), this depends on whether we market functional products or innovative products. The table below explains the characteristics of these types of products. (Click for larger image.)

Now, it should be clear that if we market functional products, we need an efficient supply chain. Conversely, the supply chain has to be responsive for innovative products.

Functional products <-> Physically efficient supply chain

Innovative products <-> Market responsive supply chain

Fisher, M. (1997). What is the Right Supply Chain for Your Product? Harvard Business Review, March-April 1997, 105-116.

2 comments:

  1. Supply Chain Management Services is a network which starts from raw material and ends at finished goods. An effective supply system can deliver good profit to the organization and qualitative service to the customers.

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