What is the second step in achieving strategic fit between competitive and supply chain strategies?

The second step in achieving strategic fit between competitive and supply chain strategies is to understand the supply chain and map it on the responsiveness spectrum. This step is crucial because it involves assessing the characteristics and capabilities of the existing supply chain in relation to how responsive it needs to be to meet competitive strategies.

Mapping the supply chain on the responsiveness spectrum allows organizations to determine if their current supply chain capabilities align with the demands placed on them by their competitive strategies, whether they focus on cost leadership, differentiation, or niche markets. Understanding where the supply chain currently stands helps identify gaps and informs decisions on whether adjustments are needed to enhance flexibility, speed, or reliability.

This step is foundational because it enables firms to align their supply chain operations with the overall competitive strategy, ensuring that they are equipped to meet customer expectations and respond to market changes effectively. It sets the stage for subsequent actions that may include evaluating costs, demand trends, and supplier relationships, all of which are important but come after the comprehensive understanding of the current supply chain dynamics.