THE SEVEN PRINCIPLES OF SUPPLY CHAIN MANAGEMENT

Abstract

There are seven principles which taken together can structure an organisation’s supply chain strategy and tactics. These principles are: segment customers based on their service needs; drive operations from demand; differentiate products closer to the customer; source strategically; develop supply chain technology strategy; and use supply chain spanning performance measures. However, there are not exact universal recipes for success, but need careful thought about their applicability to each firm. Many examples are given of the principles in action.