Explain the supply chain decision-making framework and the role of the four major drivers
What will be an ideal response?
Answer: The goal of a supply chain strategy is to strike the balance between responsiveness and efficiency, resulting in a strategic fit with the competitive strategy. To reach this goal, a company uses the four supply chain drivers discussed earlier. For each of the individual drivers, supply chain managers must make a trade-off between efficiency and responsiveness. The combined impact of these four drivers then determines the responsiveness and efficiency of the entire supply chain.
Most companies begin with a competitive strategy and then decide what their supply chain strategy ought to be. The supply chain strategy determines how the supply chain should perform with respect to efficiency and responsiveness. The supply chain must then use the supply chain drivers to reach the performance level the supply chain strategy dictates.
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