Create different supply chains for different product lines, to optimize capabilities for each. The supply chain strategies and networks that once served the company well can soon become obsolete as the market shifts occur.
Create flexibility by ensuring that different products use the same components and production processes. But some companies--Wal-Mart, Amazon.
Establish incentives for supply chain partners to improve performance of the entire chain. They handle unexpected external disruptions smoothly and cost-efficiently.
And they recover promptly from shocks such as natural disasters, epidemics, and computer viruses. Keep a small inventory of inexpensive, nonbulky product components to prevent manufacturing delays. That impacted even its own internal customer, the printer division.
Satellite connections link stores with distribution centers, suppliers, and logistics providers. Provide all partners with equal access to forecasts, sales data, and plans.
Track economic changes, especially in developing countries. Reader Feedback Lee said that he had studied in-depth the supply chains of more than 60 companies from around the globe.
Lee says printer RR Donnelly encourages paper and ink suppliers to innovate and shares any resulting savings with them. It will be a long journey for most, but I do think it is possible to move increasingly closer to the goal. Can we really get to the level of total supply chain alignment in the way Lee describes it?
Many companies, he says, play off speed against cost, but the winners respond both quickly and cost efficiently. I like the Triple-A framework of agility, adaptability, and alignment, but may have taken a slightly different approach to discussing each.
Align incentives so that players maximize overall chain performance while also maximizing their returns from the partnership.
He simply says it is not enough to deliver any sort of real or lasting competitive advantage.
Perhaps the toughest dimension. For standard, high-volume products, commission contract manufacturers in low-cost countries.
Within six hours after the Kobe earthquake, SEJ overcame highway gridlock by mobilizing helicopters and motorcycles to deliver 64, rice balls to its stores in the beleaguered city. Increase use of postponement strategies to delay adding value or differentiation as late as possible in the supply chain process.
SEJ reallocates inventory among stores and reconfigures store shelves three times daily to cater to different customer groups at different hours. Improve collaboration with suppliers on product design; 3.
As a result, the printer division kept high inventories as a buffer, when it would have been less expensive for HP as a whole to keep more chip inventory than the more expensive printers. Finish products only when you have accurate information on customer preferences.The Triple-A Supply Chain harvard business review • october page 3 Hau L.
Lee ([email protected]) is the Thoma Professor of Operations, Information, and Technology at the Stanford Graduate School of Business in Stanford, California, and the.
Is now the time to develop a “Triple-A” supply chain? I wonder how many of us believe that we have a real Triple-A supply chain, but instead have something more like the Triple-A ratings that Moody’s and Standard and Poor’s were slapping on all manner of housing-backed bonds that we now know.
Building a strong supply chain is essential for business success.
But when it comes to improving their supply chains, few companies take the right approach. Title: The Triple-A Supply Chain cost-efficiency. If a company can attain all 5 of these qualities then it can easily develop a competitive advantage that is 5/5(1).
When I describe the triple-A supply chain to companies, most of them immediately assume it will require more technology and investment. What they need is a fresh attitude and a new culture to. Download Citation on ResearchGate | The Triple-A Supply Chain | Building a strong supply chain is essential for business success.
But when it comes to improving their supply chains, few companies.Download