Chains of Luxury – Harmonized Upstream and Downstream SCM-luxe strategy chains (Part 3 of 3)

It is important to note that both the up and downstream processes need to be harmonized in terms of strategy. For example, the upstream strategy cannot be one for “true” luxury products say using in-house design, local manufacture and premium sourcing strategy while the downstream strategy is one for more “premium” products, say using a distribution network supplying to department store corners as the point of sale. We need to judiciously use strategies in a holistic way to achieve end to end SCM-luxe harmonization.

An end to end supply chain strategy could be on various levels:   

1. Chains of gold – use true luxury strategic components for both upstream and downstream functions
2. Chains of Silver – use a mixture of true luxury and premium components
3. Chains of Steel – use more cost effective components of the strategies. In this case the product risks being commoditized