Previous

Part - IX

Step 3: Achieving Strategic Fit

The third and final step in achieving strategic fit is to ensure that the supply chain is consistent with the targeted customer’s needs. The degree of supply chain responsiveness should be consistent with implied demand uncertainty.

In order to achieve strategic fit, the greater the implied demand uncertainty, the more responsive the supply chain should be. This relationship is represented by the "zone of strategic fit" illustrated in Figure 4. For a high level of performance, companies should gear their competitive strategy (and resulting implied demand uncertainty) and supply chain strategy (and resulting responsiveness) toward the zone of strategic fit.

Next

* Contributed by -
Amit Mishra,
PGP 19188,
Indian Institute Of Management, Lucknow.