{"id":6794,"date":"2020-07-02T07:36:39","date_gmt":"2020-07-02T12:36:39","guid":{"rendered":"https:\/\/flevy.com\/blog\/?p=6794"},"modified":"2020-12-19T22:10:50","modified_gmt":"2020-12-20T03:10:50","slug":"mastering-strategic-supply-chain-planning-the-pegasus-of-strategy","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/mastering-strategic-supply-chain-planning-the-pegasus-of-strategy\/","title":{"rendered":"Mastering Strategic Supply Chain Planning: The Pegasus of Strategy"},"content":{"rendered":"

Strategic Supply Chain Planning<\/a> is the “Pegasus of Strategy.”\u00a0 It can soar, but it also needs to keep its feet on the ground.\"\"<\/p>\n

Companies with a global supply chain now need to introduce its strategic left hand to its operational right hand.\u00a0 To make planning more valuable, its strategic supply chain planning needs to combine strategic planning with its tactical supply chain planning.\u00a0 The importance of aligning strategic direction to the supply chain has become of utmost importance.<\/p>\n

Senior Managers formulate strategies to maximize shareholder value. Supply chain planners run optimization models to minimize costs. If scenario planning is combined with supply chain planning, the best of both worlds is achieved. The company can expect to achieve a long-term competitive advantage.<\/p>\n

Strategic Supply Chain Planning provides the framework in selecting projects that best support the organization\u2019s supply chain objectives and strategies. It plays an essential role within the Planning Spectrum.<\/p>\n

The Planning Spectrum<\/strong><\/p>\n

Within the Planning Continuum<\/a> are 3 decision-making models of importance to the business.<\/p>\n

\"\"<\/a><\/p>\n

The range of Strategic Planning approaches across the Planning Spectrum depends on the fundamental changes it is focused on.\u00a0 Strategic Planning, Strategic Supply Chain Planning, and Tactical Supply Chain Planning differ in terms of scope of decision making, decision horizon, flexibility to act, and possible tools to use.<\/p>\n

Let us take a look at Strategic Planning.\u00a0 In Strategic Planning, its scope of decision making covers the entire nature of the business. This means that the planning scope covers the reevaluation of the business model.<\/p>\n

When undertaking Strategic Planning,<\/a> there are several tools that can be used.\u00a0 Organizations may use the Framework Analysis or lower-level analysis that may entail the use of spreadsheets. Dynamics tools and other simulation tools may also be used.<\/p>\n

If we look at the Strategic Supply Chain Planning, its scope of decision making is more focused or directed. This is undertaken to determine whether there is a need to open or close plants and distribution centers.\u00a0 It is used to determine whether there is a need to modify capacity, change product offerings even the decision to manufacture in-house or to outsource it. Strategic Supply Chain Planning is more directed towards a specific area.<\/p>\n

Once Strategic Supply Chain Planning has been undertaken, it is appropriate to follow this up with Tactical Supply Chain Planning<\/a>. It is at this point wherein organizations now have to plan out and determine which plant should produce what product over the coming months depending on the demand forecast.<\/p>\n

When undertaking the Planning Spectrum, it is best to understand the scope of decision making of each planning approach for organizations to achieve the best results.<\/p>\n

Other Organizational-based Tools<\/strong><\/h2>\n

The 3 Planning approaches have demonstrated effective use of organization-based tools to maximize results and impact. One is the use of Optimization Models for Strategic Supply Chain Planning. The Optimization Model has been known to have been applied effectively by corporations such as Baxter International, Inc., Pet Inc., and GM.<\/p>\n

Baxter International, Inc. has been successful in using SAILS or Strategic Analysis of Integrated Logistics Systems. It has been used to evaluate consolidated approaches. Pet Inc was able to used SAILS to assess supply chain synergies from 2 potential acquisitions.<\/p>\n

The use of the Optimization Model in Strategic Supply Chain Planning and Tactical Supply Chain Planning differs both in design and use.\u00a0 Hence, it is essential for organizations to have a good understanding of the Planning Spectrum to effectively integrate to use the Optimization Model.<\/p>\n

Interested in gaining more understanding of Strategic Supply Chain Planning<\/a>? You can learn more and download an editable PowerPoint about Strategic Supply Chain Planning<\/strong> here on the Flevy documents marketplace<\/a>.<\/p>\n

Do You Find Value in This Framework?<\/h2>\n

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library<\/a>. FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:<\/p>\n

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”<\/p>\n

\u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”<\/p>\n

\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p>\n<\/blockquote>\n

“As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”<\/p>\n

\u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p>\n<\/blockquote>\n

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”<\/p>\n

\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p>\n<\/blockquote>\n

“Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”<\/p>\n

\u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Strategic Supply Chain Planning is the “Pegasus of Strategy.”\u00a0 It can soar, but it also needs to keep its feet on the ground. Companies with a global supply chain now need to introduce its strategic left hand to its operational right hand.\u00a0 To make planning more valuable, its strategic supply chain planning needs to combine… Mastering Strategic Supply Chain Planning: The Pegasus of Strategy<\/span><\/a><\/p>\n","protected":false},"author":111,"featured_media":6797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82,81],"tags":[2036,27,2035,2037],"class_list":["post-6794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","category-strategy","tag-planning-continuum","tag-strategic-planning","tag-strategic-supply-chain-planning","tag-tactical-supply-chain-planning"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/111"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=6794"}],"version-history":[{"count":8,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6794\/revisions"}],"predecessor-version":[{"id":7981,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6794\/revisions\/7981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/6797"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=6794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=6794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=6794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}