Framework
Strategic fit matrix (efficiency vs responsiveness)
The question it answers
A supply chain director whose firm sells both staple lines and new designs must decide which products get a low-cost supply chain and which get a fast-response one.
- Origin
- Fisher, 1997; Chopra, 2019, ch. 2
- Diagram type
- 2×2 matrix
- Level of analysis
- Firm
Diagram
Strategic fit matrix (efficiency vs responsiveness)
Efficient: low costSupply chain typeResponsive: fast reaction
Responsive chain, functional product: mismatch
Paying for capability that goes unused
Medium riskResponsive chain, innovative product: fit
For example a new mobile phone
Low riskEfficient chain, functional product: fit
For example table salt, a staple
Low riskEfficient chain, innovative product: mismatch
Stock-outs on hits, mark-downs on misses
High riskFunctional: stable demandProduct type by demandInnovative: unpredictable demand
When to use it, and when not to
Use it when
Classify products before choosing warehouses, suppliers and stock levels.
Pitfalls
Pitfall
Placing the whole company in one cell. One firm usually sells both functional and innovative products, so the supply chain has to be tailored by product, channel or customer segment (Chopra's term is tailoring).
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Chopra, S. (2019) Supply chain management: strategy, planning, and operation (7th global edn). Harlow: Pearson.No DOIpearson.comCited in 4 articles
- Fisher, M.L. (1997) ‘What is the right supply chain for your product?’, Harvard Business Review, 75(2), pp. 105–116.No DOIhbr.orgCited in 3 articles