| Supply chain strategiesThe supply chain strategies consist of two layers: Sourcing Strategies The sourcing strategy defines how Enterprise Planning must
choose between the sources of supply, which are manufacture, purchase or
distribution. The sourcing strategy determines how demand is fulfilled by what
kind of supply. Supply Strategies The supply strategy defines per source the supplier choice
within that source. For example: when Enterprise Planning decides on the basis of the
sourcing strategy that a planned purchase order should be generated, the supply
strategy determines which supplier will be selected.
Therefore, the process of sourcing and supplier choice is a
two-step approach. | |