ABSTRACT

In this chapter we describe and apply a framework for structuring a supply chain. A theme will be creating something that’s “different” from the competitive field. In keeping with our theme that supply chains should offer competitive advantage, this framework follows a methodology that will produce a different supply chain that will stand out from competitors. Many organizations pursue supply chain designs with the sole intent of reducing cost. Chapter 6 described the situation of the “functional” product where cost can be the overriding objective. Here we describe a way to apply market segmentation and customer specifications to supply chain design. Rather than simply trying to beat costs out of the supply chain, we can deploy chains that improve the competitive position.