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 , these 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.