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the concentration of income in one link of the chain of value.




Lecture 4.

 

 

Strategy of competitive behavior and strategy of supply chain management.

The famous american scientist, expert on competitive strategy, Michael Porter in his book of the same name developed in detail the theory of competition. According to this theory the choice of competitive strategy of the company due to two main points. First, the attractiveness of the industry in terms of long-term profitability, as well as factors that determine it. Not all types and kinds of activities inherent ability to remain profitable for a long time, so the internal rate of income in industry has significant impact on the profitability of individual companies.

The second central moment in the choice of competitive strategy - there are factors that determine the competitive position of the company in industry.

Main directions of strategic coordination of competitive solutions with partners in the supply chain. In this regard, we can remember the works of local scientists, including:

A.I. Pushkar, J.E. Zhukov, A.A Pylypenko on forming strategic enterprise groups; V.N.Gorbatova and A.A.Pylypenko on strategic integration of enterprises, for example by cooperate with competitors, the integration efforts through partnerships, strategic alliances, etc;

A.S. Zagorodny and Z.O. Koval on making competitive advantage through evaluation of formation and relationships of the manufacturer with consumer products;

N.I. Chukhrai and Y.Y. Kryvoruchko regarding the formation of relationships between business partners

E.V.Krykavsky and N.V.Chornopyskoyi for the design and organization of logistics systems, including supply chains and logistics networks globally.

 

However, despite the many divergent view sand opinionon the supply chain, it has take littl eattentiontoto thestudyofconditionsanddirectionsofstrategicintegrationsolutionsinthesupplychain, particularlyinthecompetitivestrategyofthewholesupplychain causes the choice of research topic.

Strategic decisions in the supply chain

Definition of supply chain competitiveness issues and determine their attributes should be connected with the preparation of the list of main (strategic) decisions in the supply chain.

Thestudyoftheliteratureonthesubjectofresearchandempiricalstudiesallowauthorsto form a list of typical strategic decisions:

-indefication ofcorecompetenciesandchoice the strategyof the supplychain,

-adept chain to the nature and characteristics of demand proposals,

-development a general concept of chain - combination of functions and processes,

-definition range and degree of outsourcing,

-select suppliers and intermediaries in the distribution,

-design system of movement of raw, materials, etc., as well as finished products,

-select concept of inventory management,

-solutions regarding information system, including the transfer of information,

-select principles or models of risk management in the supply chain,

 

-solutions regarding relations between the participants of the chain,

-select method of cost management,

-select localization of logistics facilities and their equipment,

-select mode of transport and routing traffic and so on.

 

In analyzing of supply chains, especially global supply chains, it is important to consider two things:

General price pressure, which makes supply chain leaders continually focus on lower prices, even when competitive strategy is focused primarily on quality or delivery time;

the concentration of income in one link of the chain of value.

 

This last phenomenon is observed in many activities,for example in area of personal computers associated with microprocessors and software, in the chemical industry - the production, not distribution, while in the area of general consumption stands in distribution, not in production.


Using formulated from the literature list of factors, which have influenceon the supply chain, you can build a general model of factors that determine the strategy of supply chain (pic. 2).

 

Pic. 2. Factors influencing the choice of supply chain strategy

 

All modern integrated supply chains are oriented on the finished customer, ruled by demand. Difference only in degree of adaptation to changes in demand (in particular turning-point) and those attributes and the extent to which used in competing.Chain strategy should be consistent with the strategy of the corporation or other enterprises systems and with the strategy of leader of chain.In this connection important experience of foreign companies concentrate attention on building and restructure their supply chains so that fast as possible to deliver finished products and services to customers. According to Hau Lee L. scientist from the Harvard Business School, who studied for 15 years the most successful supply chain last:

Ø characterized not only high speed of supplies but low cost;

Ø additional high flexibility to respond to changes in supply and demand;

Ø easily adapt to severe changes in the structure of the market;

Ø take into account the interests of all members who are part of the supply chain.

 

measures.





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