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Thursday, February 25, 2016

Comparison of Efficient and Responsive Supply Chain

  EFFICIENT SUPPLY  CHAIN                                            RESPONSIVE SUPPLY CHAIN

PRIMARY GOAL:  supply demand at a lower cost                        respond quickly to demand


PRODUCT DESIGN: maximum performance at minimum cost     creates modularity for product changes                                                                                                                            

PRICING STRATEGY: lower margins as price is a prime            higher  margin, price isn't a driver

MANUFACTURING: lower cost, high utilization                        flexible capacity to buffer unpredictability


INVENTORY ; minimize inventory to lower costs                        maintains buffer inventory
                                                                                         
                                                                                                                                                  

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