Based on this approach, which of the following steps is the most important for this company to take?

A company is developing a supply chain strategy that is more focused on creating value.

Based on this approach, which of the following steps is the most important for this company to take?
A . Assess suppliers’ capabilities.
B . Analyze the inbound flow to the company’s facility.
C . Design internal operations to meet customers’ requirements.
D . Study and benchmark the company’s operations.

View Answer

Answer: C

Explanation:

According to the ASCM CTSC Exam Content Manual, a supply chain strategy that is more focused on creating value is based on the principle of customer-centricity1. This means that the supply chain strategy should align with the value proposition and expectations of the target customers, and deliver superior value to them in terms of quality, cost, service, and innovation12. Therefore, the most important step for this company to take is to design its internal operations to meet customers’ requirements, such as product specifications, delivery time, customization options, and after-sales support13. This will help the company to differentiate itself from competitors, increase customer satisfaction and loyalty, and enhance its profitability and market share12.

1: ASCM CTSC Exam Content Manual, page 12.

2: A new era for procurement: Value creation across the supply chain | McKinsey

3: Strategic Value Creation in a Supply Chain – IGI Global