Rules for the Chip Exercise
There are four attributes of supply chain performance:
2. Flexing and responsiveness
4. Asset management efficiency
The objective of the chip exercise is to prioritize these attributes for each
customer or maker channel, determining whethet the company needs to
perform each attribute at a superior level, a level af advantage, or at parity
There’s a catch: for each costumer or maker channel, the team is only
allowed to set one performance attribute at the superior level and one at the
level of advantage. The other two attributes must be set at parity.
Finally, the requirements are established from the company’s point of view
as they relate to the competitive landscape of the future. This is not a goal
setting exercise; it’s a strategic exercise, focused on how to differentiate
against stiff competition in the future.