View of The Review of Factors that Influence the Supply Chain Performance (2024)

FAQs

View of The Review of Factors that Influence the Supply Chain Performance? ›

There are different factors that may influence directly a company's performance but indirectly they affect the entire chain. Some of these factors are: longevity of the relationship, supply base reduction, supplier involvement, information sharing, cross-functional teams, trust and commitment.

... Additionally, several other factors that influence the supply chain performance are environmental uncertainty, top-management support, customer focus, information technology, strategic purchasing, logistic integration and supply network structure.

Every business has its own set of measurements for tracking supply chain performance. However, the five most common measures are perfect order rate, supply chain costs, order fill rate, cash-to-cash cycle time, and inventory turnover.

While supply chain is a very broad career field, it has 7 primary functional areas: Purchasing, Manufacturing, Inventory Management, Demand Planning, Warehousing, Transportation, and Customer Service.

Analyze key metrics like inventory turnover, transportation costs, warehousing expenses, fulfillment cycle time, on-time delivery, lead time, order accuracy and production cycle time to improve efficiency across your entire supply chain. Measuring these KPIs uncovers inefficiencies and gaps in the supply chain process.

Dependingon the size and nature of the enterprise, supply chain can take many forms, but the basicelements of each supply chain are as follows: suppliers, production and distribution togetherwith the common links between them.

SCM practices impact not only overall organizational performance, but also competitive advantage of an organization. They are expected to improve an organization's competitive advantage through price/cost, quality, delivery dependability, time to market, and product innovation.

A supply chain performance analysis is a systematic process of measuring and evaluating how well your supply chain activities align with your strategic goals and customer expectations.

What are the two measures of supply chain performance? ›

#]: qualitative measures (such as customer satisfaction and product quality) and quantitative measures (such as order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance, etc.).

Increased Efficiency: An efficient supply chain can help improve the speed and accuracy of product delivery, reduce lead times, and improve customer satisfaction. By monitoring performance, you can identify bottlenecks and inefficiencies in your supply chain and take steps to improve processes and eliminate waste.

Supply Chain Performance refers to the extended supply chain's activities in meeting end-customer requirements, including product availability, on-time delivery, and all the necessary inventory and capacity in the supply chain to deliver that performance in a responsive manner.

Key elements to be considered are: Supply Chain Strategy, organization and planning. Supply chain performance measures are often referred to in research and by practitioners as quality, delivery, cost/price and flexibility.

The four main performance dimensions for supply chain activities are Cost, Quality, Speed, and Flexibility.