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Supply chain strategy is a road map used by companies to ensure that customers receive products without interruptions. They include the demand-driven and the adaptive and agile supply chain strategy. Real-time demand shapes the basis of the demand-driven supply chain strategy (Tiedemann, 2020). Digital tools play a prominent role in demand prediction capabilities. This allows supply chain management teams adjust their supply chains to meet demands. This paper gives insights into two types of supply chain strategies, the companies using them, and an evaluation of how successful these strategies were.
Cloud-based technologies feature in supply chain management as more companies continue moving their data to the cloud. This allows for the development of unified data models, which are subject to external influence. New and effective planning accuracy levels and predictive capabilities have resulted because of these new dynamics. Several organizations use the new dynamics in the demand-driven supply chain strategy. JP Morgan Chase is a financial services company that has taken advantage of cloud-based systems to enhance its competitiveness and organizational performance (Tiedemann, 2020). It recently incorporated a digital transformation blueprint, which includes cloud technology, robotics, big data, and block-chain.
The adaptive and agile supply chain strategy consists of integrated production and rapid planning. Companies using this strategy achieve greater flexibility and operational speed by better aligning their manufacturing and planning departments (Tarafdar & Qrunfleh, 2017). Cloud-based platforms have eradicated the problem of effectively integrating the organizational planning processes with the execution of such processes in real-time. Organizations link business execution activities such as inventory management, manufacturing, and procurement to material and financial planning activities. This allows easy adoption of companies to market dynamics.
H&M has become one of the most profitable apparel brands in Europe due to its supply chain agility (Tarafdar & Qrunfleh, 2017). H&M maintains accessories supplies such as decorative hooks, zippers, and buttons so that it can finish its clothes regardless of whether the supply chain breaks down. It does not incur any warehousing costs due to not over-stocking its warehouse when making its purchases.
An overall outlook at both supply chain strategies indicates that adequate insights and evaluations characterize each strategy in this paper. The demand-driven and the adaptive and agile supply chain strategy have proven to be successful in their designs as exemplified by JP Morgan Chase Company and H&M. Success is evident in JP Morgan while H&M has scaled the heights of profitability in apparel brands in Europe.
References
Tarafdar, M., & Qrunfleh, S. (2017). Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility. International Journal of Production Research, 55(4), 925-938.
Tiedemann, F. (2020). Demand-driven supply chain operations management strategiesa literature review and conceptual model. Production & Manufacturing Research, 8(1), 427-485.
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