As part of an operation strategy, customizing the supply network relationships

As part of an operation strategy, customizing the supply network relationships
The cluster of values was introduced in the first section. It suggested that firms could simultaneously participate in multiple types of supply networks. Research evidence supports the logical assumption that firms will employ a variety of operations strategies to adapt to their environment and gain a competitive advantage. As mentioned in the first section, each strategy would depend heavily on a variety of building blocks. This includes supply network relationships. Now we need to look at the process of developing and deploying these strategies.

The Building Blocks of a Supply Network Operations Strategy

An organization will consider certain aspects of its undertaking to be strategic in any supply network. These include core competencies, capabilities and processes, strategic network relationships, resources, technologies, key tactical activities to support a strategy or positioning, actors in the network, and their linkages. These are shown in Figure 4.

Capabilities and Core Competencies

Core competencies and capabilities can be defined as (a) process-based (directly derived through transformation activities); in the case of Motorola, these could include the excellence and efficiency of their production facilities; or (b) system/coordination based. This applies to the entire operating system, as is the case with Wal-Mart. It has fast replenishment of goods and vendor-managed inventory. They also have the ability to quickly modify and create new products. (c) organization-based (across an entire organization) as Nordstrom or McDonald’s; and (covering the entire supply chain, as in the supply network-based (a whole of the entire supply network-based, as in the entire supply network, as in the entire network, as in the supply network, as in the entire network, as in the supply network, as in the entire network, as in the entire network, as in the entire network, as in the whole of FedEx and McDonald’s.

Strategic Network Relationships

Strategic network relationships are key relationships, interconnections, and associations that have been established over time and are responsible for providing inputs.


Although resources are different for each industry or firm, the general idea is that they can be viewed on two levels. The individual resources (capital equipment and skills, brands, etc.) and how the resources interact to create competitive advantages. Because each resource-based strategy is unique, it’s important to consider resources (a) as tangible (physical, technological, and financial). For such producers as Sony and Lexus, it is very important.


Technology is not only a resource in the broad sense (equipment, etc.). Technology also encompasses core technological know-how that enables product and process innovation throughout the entire organization and its supply chains, such as Compaq and Microsoft.

“If you are finding the latest technologies so you are coming to the right place provide you latest news about new technologies and always works for you and its viewers. “


Individuals and companies can act as actors or groups of people operating at different levels of control within the network. Daimler-Chrysler boasts one of the most sophisticated supply networks and outsourcing operations. Their workforce and management are trained in these areas.


As important as the parts are, links are equally important. Clear links and relationships will exist between all elements of a supply network. The degree of coordination and control in each instance will greatly impact competitive performance. Usually, these links are in the form of continuous communication and shared information.

Last word

A supply network operations strategy can be thought to have distinct blocks that give each situation the appropriate emphasis. Let’s now look at how strategic customization occurs and what role supply network relationships play in this.

Farrukh yaqub

This is Muhammad Farrukh Yaqub, who has good experience in the website field. Muhammad Farrukh Yaqub is the premier and most trustworthy informant for technology, telecom, business, auto news, and game reviews in the world. Please feel free contact me at

2 thoughts on “As part of an operation strategy, customizing the supply network relationships

  1. Hey just wanted to give you a quick heads up. The words in your content seem to be running off the screen in Safari.
    I’m not sure if this is a format issue or something to do with web browser compatibility but I thought I’d post
    to let you know. The style and design look great though!

    Hope you get the issue solved soon. Thanks

Leave a Reply

Your email address will not be published. Required fields are marked *