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Supply Chain as Strategic Asset.pdf
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Copyright # 2011 by Vivek Sehgal. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Sehgal, Vivek.
Supply chain as strategic asset : the key to reaching business goals / Vivek Sehgal.
p. cm. — (Wiley corporate f&a ; 22)
Includes index.
ISBN 978-0-470-87477-6 (hardback); ISBN 978-0-470-93966-6 (ebk);
ISBN 978-0-470-93967-3 (ebk); ISBN 978-1-118-00287-2 (ebk)
1. Business logistics. 2. Strategic management. I. Title.
HD38.5.S444 2011
658.7—dc22 2010031878
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
CONTENTS
Preface xiii
Acknowledgments xix
Introduction xxi
Chapter 1: Planning and Realizing the Goals of a Business Strategy 1
Strategy 2
Strategy Realization through Functional Capabilities 3
Strategy Planning: The Missing Link 5
Technology as the Enabler 8
Creating Competitive Advantage through Functional Capabilities 10
The Alignment of Business, Functional, and Technology Strategies 12
Chapter 2: Understanding Strategy 14
What Is Strategy? 14
Attributes of Strategy 19
Levels of Strategy Planning 25
The Strategic Horizon of Impact 28
Chapter 3: Concepts of Business Strategy 33
Porter’s Generic Strategies 34
The Resource-Based View 43
Capabilities-Based Strategies 46
Creating Advantages by Viewing the Corporation as the Sum of Its
Components 51
Creating Advantages through the Value Chain 55
Developing Competitive Advantages through Capabilities 60
Understanding Advantage 67
Beyond the Business Strategy: Functional and Deployment Strategies 73
ix
Chapter 4: Exploring Functional Strategy 75
What Is Functional Strategy? 77
Why Is the Functional Strategy Important? 86
Steps in Creating the Functional Strategy 89
Chapter 5: Current Thinking on Supply Chain Strategy 105
Current Thinking on Supply Chain Strategies 106
Understanding the Supply Chain Sphere of Influence 123
What Drives Your Supply Chain? 126
Chapter 6: Creating a Functional Supply Chain Strategy 139
The Effect of an Industry Segment on Supply Chain Design 140
The Effect of a Business Strategy on Supply Chain Design 142
The Effect of the Primary Driver on Supply Chain Design 143
Supply Chain Strategy and Business Strategy 148
Chapter 7: Technology Strategy 164
What Is Technology Strategy? 167
Components of a Technology Strategy 171
Why Develop a Technology Strategy? 179
Technology Strategy and Organization 185
Process Overview and Deliverables for
Creating Technology Strategy 188
Chapter 8: Supply Chain Nirvana: Bringing It All Together 203
What Is Supply Chain Nirvana? 205
Defining a Supply Chain Strategy That Works 207
What Can a Well-Aligned Supply Chain Strategy Do for You? 226
How to Get There 236
Keeping It All Together 250
Appendix A: Sample Artifacts for Creating an
Effective Supply Chain Strategy 255
Appendix B: An Overview of the Scope of the Supply
Chain in Modern Corporations 272
Supply Chain Planning 275
Supply Chain Execution 276
Supply Chain Collaboration 279
x & Contents
Appendix C: The Supply Chain and Corporate
Financial Performance 283
Cost of Sales 284
Inventory 287
Working Capital 289
Tune Your Supply Chain for Financial Performance 290
Notes 293
Bibliography 297
About the Author 299
Index 301
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