SUPPLY CHAIN STRATEGY

E d w a r d H . F r a z e l l e , P h . D .

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RightChain™ service customers and to take the burden of worry about supply chain logistics off the sales and marketing team, so they can focus on sales and marketing . In the end, the strongest proponents for our RightChain™ programs are often the sales and marketing teams, the dealer support groups in automotive service parts, the chefs in our restaurant programs, the doctors in our healthcare programs, etc. The RightChain™ begins with service! The second consideration in RightChain™ supply chain strategy development is inventory planning and management. Many assume that the goal is to minimize the amount of inventory in the supply chain. That’s not the goal. The goal is to determine the amount and mix of inventory that satisfies the requirements of the customer service policy and maximizes the financial performance of the inventory. The third set of RightChain™ decisions are in the area of supply. The RIghtChain™ needs suppliers and purchasing decisions with those suppliers whose performance meets the requirements of the customer service policy at the maximum financial performance. Since we have to make up the gap between supplier service and customer service with excess inventory and/or excess transportation costs, we

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