Optimising Supply Chain Strategy and Tactics

Optimization in the CSCP material begins with alignment between business strategy and supply chain strategy, then uses analysis and improvement to increase value.

Why it matters

An isolated functional optimum can harm end-to-end performance. Optimization therefore requires trade-off analysis across service, cost, assets, risk and strategic objectives.

Core concepts

• Supply chain strategy should support the business strategy.

• Optimization requires trade-offs rather than maximizing every performance dimension simultaneously.

• Tactical decisions should reinforce long-term strategic objectives.

• Total supply chain cost is more useful than isolated functional cost when evaluating alternatives.

• Scenario and what-if analysis can support comparison of alternatives.

• Optimization should improve end-to-end value rather than a single function.

Remember for the exam

• Optimize the supply chain, not one function in isolation.

• Strategy and tactics must be aligned.

• Trade-offs are unavoidable.

• Total cost and customer value should both be considered.

Apply it

• Use this concept in a practical decision by asking: Optimising Supply Chain Strategy and Tactics

• Then check the decision against this principle: Optimization in the CSCP material begins with alignment between business strategy and supply chain strategy, then uses analysis and improvement to increase value.

Exam trap

Watch for questions that test this distinction or principle: Supply chain strategy should support the business strategy.

Key takeaway

Supply chain optimization aligns strategy and tactics so the network can improve performance, reduce total cost and create greater customer and business value.