Characteristics of strategic decisions in the supply chain

They are decision concerned with the whole supply chain environment in which the firm operates in. They include:

1) They are proactive – They should forecast inventory, manufacturing and customer needs in advance before they happen.
2) They are flexible – As a global economy becomes more interconnected, new markets emerge, therefore there is need to adapt to changes in the supply chain e.g. customer preference so as to remain competitive.
3) Compliance with the law – They should adhere to federal, local and state laws.
4) They are unifying – They offer an integrated approach to supply chain management. They integrate departments, promote open communication, unify company goal and ensure team playing.
5) They are easy to understand and ensure traceability of raw materials up to finished products in the supply chain.
6) They encourage innovation – They give room for formation of new products and services in line with the market trends.
7) They are sustainable, easy to adapt and carry along.
8) They ensure adoption of latest technology.

Good strategic decisions in the supply chain ensure delivery of quality products, timely deliveries at cost effective prices.

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