SCRM Strategy

Supply chain management (SCM) can be defined as the process of planning, controlling, executing, and optimizing the flow of materials, information, money, and people over the entire length of the internal and external value chain, that is, from the supplier of the raw materials to the end customer (Werner, 2020). This is primarily intended to improve the efficiency of the processes, increase customer benefits, and optimize the resource requirements in order to ultimately supply customers and markets with goods that are economically successful. SCM is a core function and must be integrated into the overall strategy of the enterprise (Helmold & Terry, 2021). Supply chain management operates at three levels: strategic, tactical, and operational. At the strategic level, company management makes high-level strategic supply chain decisions that are relevant to whole organizations. The appropriate supply chain strategy is a key success factor for any business and is one of the keys to sustainable success (Werner, 2020). Strategy helps organizations to maximize their resources and environment and allows them to develop new ways to stay ahead of competitors. Even with great ideas, or great products and services, you are unlikely to be successful in the long term without an appropriate strategy. A sustainable and long-term strategy must be the integral part of the corporate strategy (Helmold, Dathe & Hummel, 2019). Strategic management is a framework that is dealing with recognizing and making the important changes toward its mission and vision by using resources and assets in the most efficient way (Helmold & Samara, 2019). It is a framework which links strategic planning and decision-making with the everyday business of operational administration. Strategic management is very important for an organization’s long-term success, which is making companies able to compete in a hostile and competitive environment (Johnson et al., 2017). Translation of strategic management plans into practice is the most important aspect of the planning itself in any organization. Strategic and lean plans can include actions like entering new markets, global sourcing, make or buy strategies, deployment of new products or services, centralization or decentralization of activities, or aligning leadership and resources as outlined by various authors (Helmold, 2021). The three levels of strategy, developed by Gerry Johnson and Kevan Scholes along with other major managerial thinkers, are a way of defining the different layers of strategy which, in tandem, orient the direction of the organization and define its success (Johnson et al., 2017). The three levels are as follows: