ABSTRACT

Supply chain executives face fundamental dilemmas in the way they configure their global supply chains. A dilemma occurs in situations where there are two goals and pursuing one of them compromises the other. We call them dilemmas rather than trade-offs because there is no optimal solution. They are neither solved nor decided – executives must constantly manage the divergent forces. Among the most important are:

How flexible vs. how efficient should the supply chain be?

What is the best global footprint for the supply chain?

How should capital be allocated in the supply chain?

How should the processes in the chain be organized?

What is the best way to accelerate an improvement in the supply chain?