Supply chain strategies

The 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.