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Assure price and
service
Minimize
material types
Assure supplier
Assure Market
Obtain at good
price
Ensure quality
material
Ensure timely
delivery
Fig. 7
Intentional alignment of user organization with supply chain
Now consider the supplier organization as in Fig.
4.
The root goal
Maximize
profits prima facie
does not seem to belong to the supply chain goal hierarchy.
However, when viewing its decomposition, we find that
Capture large market share
and
Deliver quality systems
are both relevant to
Assure Market
of Fig.
6.
This organi-
zation has to assure its own suppliers of parts. Therefore, the sub goal
Obtain quality
parts
is relevant to
Assure supplier
. Maintain profitability is an internal goal of the
supplier organization and does not really form part of the supply chain. Alignment
of goals of the supplier organization with supply chain goals is shown in Fig.
8.
Lastly, consider the component supplier. Alignment of its goals with those of
supply chain goals is shown in Fig.
9.
The retailer is looking to assure its market
and the sub goals
Stock parts of all specifications
,
Stock parts of different quality
,
and
Do delivery at customer site
can all be treated as sub goals of
Assure market
.
Assure price and
service
Minimize
material types
Assure supplier
Assure Market
Obtain quality
parts
Capture large
market share
Deliver quality
systems
Fig. 8
Intentional alignment of supplier organization with supply chain
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