OBSTACLES TO

ACHIEVING

STRATEGIC FIT

Achieving strategic fit is a company’s ability to find a balance between responsiveness and efficiency that matches the needs of its target customers.

Increasing variety of products Customers demanding ever more

customized products ….

Decreasing product life cyclesToday there are products whose life cycles can

be measured in months ,compared to the old standard of years.

Increasingly demanding customers Customers are constantly demanding

improvements in delivery lead times, cost and product performance.

Fragmentation of supply chain ownership

Most firms have become less vertically integrated. as companies have shed noncore functions, they have been able to take advantage of suppliers & customer competencies that they themselves did not have.

GlobalizationAdds stress to the chain, because facilities

within the chain are farther apart, making coordination much more difficult.

Difficulty in executing new strategiesOnce the good strategy is formulated , the

execution of the strategy can be more difficult

TO CONCLUDE…

Overcoming these obstacles offers a tremendous opportunity in terms of untapped improvement with in supply chain. the increasing impact of obstacles has led to supply chain management becoming a major factor in the success or failure of firms.

“When obstacles arise, you change your direction to reach your goal;you do not change your decision to get there.”

THANK YOU…