Historic Supply Chain Design Characterized by “Functional Silos”
Typical Conflicting Objecitves
Purchasing
• Low purchaseprices
• Stable volumerequirements
• Flexibledelivery timing
• Little variation in mix
Manufacturlng
• Long run lengths
• Just-in-timedeliveries
• High productivity
• Low productioncosts
• Few specialpacks
Warehousing and Distrbution
• Quickreplacementcapability
• Low,centralized inventories
• Long lead times
Sales and Marketing
• Tailored promotion programs
• Hogh inventories
• High “surge” capacity for selling deals
• Many special packs
CustonerService
• High predictability
• High service levels
- High in-stock
- Short delivery times
- Quick response