Fisher Supply Chain Matrix
“Supply Chain Strategies”
Regarding focus on the Fisher supply matrix, the paper focus on the supply chain strategies, a there are various challenges that the supply chain of the company has to face. There could be the challenges of customer service as it is necessary to focus on product planning so that right product in the right quantity could be given to the customer, there are the needs to inspect the right time and right place. Moreover, there could be the challenges regarding the cost control because there can be a number of global customers and companies could face the difficulties in managing the customers, technology can prove to be effective in this way.
There could be the issues regarding new regulations in supply chain management, as planning & risk management need to be focused so that new product launches in an effective way, the companies may also face issues regarding the global sourcing and supplier relationship management as there could be no measurement of the communicating performance. Thus the supply chain, in this way needs to be designed so that there could be improvements in the supply chain related tasks and the product characteristics can be focused with the company technological maturity so that there could be efficient predictability of demand by the customers.
Technological maturity problems can lead the company to face challenges in the market, as efficient supply chain required the maintained for unpredictable or random demand in a well-organized way. Fisher’s supply chain matrix can balance the products in the right way and there could be actual impact of the technological maturity and the other related factors on supply chain design. Thus, the companies need to focus on the supply chain designed and the product characteristics, so that the predictability of demand can result to handle the actual challenges and supply chain strategies are made to maintain the unpredictable demand.
The literature has focused on the effective management, as many if the researchers have focused on the technological change and the market globalization because they have understood the market conditions and growing power of consumers and the awareness that the consumers have. Moreover, the researchers have been done in order to facilitate communication because there are higher levels of complexity when the companies do the complex strategic choices. Companies are developing the competitive positioning with the management and guidance of the managers and the consultants so that effective choice of strategy could be there which are based on the situational variables (Tseng, Wub, and Nguyen, 2011).
However, in 1977, Marshall Fisher helps the organizations by providing them with the clear guidance and provides insight that focuses on the validity; the companies are growing awareness so that there could be the best selection of supply chain strategies. Thus, the companies need to do the efficient choice of the trading partners, so that companies could able to achieve the desirable business outcomes. The companies are making the efficient business competition, in the area of the operations strategy. There is manufacturing competence as the companies have realized the importance of Fisher’s model, goals, and competencies that need to be achieving the common goal (Lo and Power, 2010).
The companies are doing efficient product strategies so that there could be an identification of the customers who are willing to buy the products. Moreover, the literature has suggested the effective operations strategy so that there could be an extension in competitive priorities and the other efficient operational strategies. Companies are making emphasizing on the objectives so that they could carry on with maintaining the generous strategic positioning in the market; Fisher’s model is helpful for the companies, as the companies have admitted its strength on a business. The companies are getting the benefit based on product planning and understanding, the authors of the researchers, understood the importance of the Fisher model (Sukatia et al., 2012).
Literature is based on generic choices of the product characteristics to make the efficient supply chain strategies through the Fisher’s model. Based on the situational variables, the companies are making the complex strategic choices and building accentuates on the objectives so that operations could carry on with preserving the liberal strategic positioning in the market (Zachariaa, Nix and Lusch, 2011). The companies should have the understanding of the functional products and the innovative products based on Fisher’s model, as discussed in the article, functional products are the products that have the stable demand pattern and the longer life cycle. Functional products have the lower product variety and also the longer lead times with the relevant and lower contribution. However, the innovative products have the shorter product life cycles with the higher product, there is focus on the variety because the products have the higher contribution margins with expecting the shorter lead times (Lo and Power, 2010).
There can be various orders of the products because of demand patterns changes with the selection of the product, the products need to be more predictable with the help of these two types of product so that companies could able to make the efficient manufacturing strategy and the other product-design strategy. Based on the innovative products and the functional products, there can be various inventory strategy, in this way, the four-cell model should be proposed by the companies known as the Fisher’s model. There can be different functional or innovative groups in order to bring and adopt the strategies including the “efficiency” and “responsiveness” so that there could be effective supply chain business operations, the mismatch of products can result in the significant problems that can take place in the business operations (Yu, Ting, and Chen, 2010).
The finding finds out the effectiveness of the Fisher’s model, as the strategies of supply chain need to be planned according to the products that need to be given in the market. Functional and innovative products need to be built on the assumptions so that the firms match supply chain strategy in regarding with the differentiation of the product type. There is factor affecting the supply chain and strategies many not be familiar with the product type because new product groups require the changes and require the different product classifications so that there could be efficiency in the demand aspects.
Marshall Fisher helps the organizations by providing that obvious control on the products and providing the imminent that focus on the validity. The companies are increasing consciousness regarding the products type so that there could be the best assortment of supply chain strategies. Matching the supply chain strategy with the product nature can be helpful of the supply predictable demand; the companies can make the effective strategies, as they could decide on the lowest possible cost by focused on the nature of their products. Companies need to respond quickly according to the unpredictable demand and the companies in this way can generate high turns, through maintaining the high average utilization rate. For maximizing the performance, the companies with the help of the Fisher’s product model can minimize the cost and can create the effectiveness regarding the choice of the customers or the product differentiation.
Above, diagram explores the concepts of Fisher’s Model. The researcher has found the empirical investigation that is between the product characteristics and the various supply chain strategies, as the current business environment need to focus on the product nature, which is questionable in the market, so that appropriate solution and strategies could be implemented. Thus, the association has found between the nature of the products and the factors that are influencing on the supply chain strategy. Efficiency and responsiveness of supply chain product can be their companies focus on Fisher’s model. The knowledge and facts of supply chain strategy can bring the opportunities and development in the market; hence, the customers can also satisfy (Lo and Power, 2010).
Fisher supply matrix can promote the supply chain strategies so that effectiveness could be there in meeting the challenges of customer service. In supply, chain the challenges regarding the cost control and the difficulties in managing the customers as they could ask for functional or innovative the products. There could be the issues concerning new regulations in supply chain management, as planning & risk management should be the concern before new product launches. Technological maturity problems can lead the company to face challenges in the market. In this way, Fisher’s supply chain matrix is appropriated and can balance the products through technological maturity and the other related factors on supply chain designs.
The researchers have found that the companies are developing the competitive positioning so that there could be an effective choice of strategy, which are based on the situational variables and the product positioning. Companies need to respond quickly according to the unpredictable demand and the companies in this way can generate high turns, through maintaining the high average utilization rate. Through matching supply chain with the product, companies are growing awareness so that there could be the best selection of supply chain strategies. Fisher’s model is helpful for the companies, as the companies have admitted its strength on a business.
- Lo, S.M., and Power, D. (2010) ‘An empirical investigation of the relationship between product nature and supply chain’, Supply Chain Management: An International Journal, vol. 15, no. 2, pp. 139 – 153.
- Sukatia, I., Hamida, A.B., Baharuna, R. and Yusoff, R.M. (2012) ‘The Study of Supply Chain Management Strategy and Practices on Supply Chain Performance’, Procedia – Social and Behavioral Sciences, vol. 40, no. 1, pp. 225 – 233.
- Tseng, M.-L., Wub, K.-J. and Nguyen, T.T. (2011) ‘Information technology in supply chain management: a case study’, Procedia – Social and Behavioral Sciences, vol. 25, no. 1, pp. 257 – 272.
- Yu, M.-M., Ting, S.-C. and Chen, M.-C. (2010) ‘Evaluating the cross-efficiency of information sharing in supply chains’, Expert Systems with Applications, vol. 37, no. 1, pp. 2891–2897.
- Zachariaa, Z.G., Nix, N.W. and Lusch, R.F. (2011) ‘Capabilities that enhance outcomes of an episodic supply chain collaboration’, Journal of Operations Management, vol. 29, no. 1, pp. 591–603.