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Developing a customer driven supply chain strategy
A selection of talks on Strategy
Hi, I'm Dr. Janet Godsell. I'm with a supply chain research sensei at Cranfield School of Management. I'd like to share with you some of the work I've done over the last 10 years. Both through research, consultancy, and my own teaching in the field of customer driven supply chain strategy.
The objectives of our session today, for you in the business context to be able to do three things. Firstly, to be able to describe the management challenges of balancing the needs of customers, shareholders, and understand the role of the supply chain can play in this. Secondly, to describe two different sorts of alignment, strategic and supply chain alignments and their constituent elements. Finally, and perhaps most importantly, I'll take you through the key elements, or what we call the 3S framework for developing a customer driven supply chain strategy. This is a practical and pragmatic strategy framework that should enable you to start developing a customer driven supply chain strategy for your business.
This presentation is divided into two key parts. The first is looking at customer driven supply chain, the theory and concepts behind it, and we'll help you evaluate whether or not it could be a new competitive weapon for your business. The second and slightly longer part, and may be perhaps arguably the most important, is then looking at the 3S framework itself and taking you through the steps that you need to undertake to look at implementing customer driven supply chain strategy within your business.
Just to check that you're awake and to get the ball rolling, let's start off with a question. The question is, is the primary objective of a profit-making company to, one, maximize shareholder value, two, maximize customer value, or three, to optimize the trade-off between shareholder and customer value? Just in this pause, have a little think and write down your answer, is one, two or three. This is a question I commonly ask either to groups of MBA students or actually to business executives. Surprisingly, I tend to get the same response in terms of answers. Around 20 percent of the audience believe that the answers one, to maximize shareholder value, around another 10 percent believe the answer is two, to maximize customer value. But, by far the great majority actually believe that the answer is three, to actually optimize the trade-off between shareholder and customer value. Interestingly, the answer is really one. The primary objective of profit-making company is to maximize shareholder value. Perhaps this is where the twist comes in.