There is no doubt that supply chain management involved a lot of apparent complexities , Yet achieving excellence is not a difficult . Justbuild the three fundamental pillars of supply chain management could insure the success of the Supply Chain Management ship in reaching safety(O’Byrne, 2016).
In this post we try to explain how could buildthose pillars and how they work align together to support supply chain management excellence.
The three pillars of supply chain management are strategy, service, and cost.
Those three pillars alignment could drives satisfaction and confidence among all stakeholders.
for instance:
Alignment of strategy and service leads to unify goals between management and workforce.
Alignment of service and cost could gain customers satisfactions.
Alignment of cost and strategy leads to achieve shareholderdesires.
With no further ado , going deep in detail taking each one in turn will take a lot therefore , a snap brief may clarify the idea .
The first Pillar :Alignment of Service in Supply Chain
Alignment of Service importance was exposed as where was established to fulfill customers desires who would make profit through lowest possible cost .
Despite the apparent complexities, there are three elements have to be taken into considerations when going to establish service as long as looking to the quality of that service which are :
1-Planning and inventory :
(Sunil Chopra, 2016)It is one of the critical factors that impact on the fulfilment of the supply chains as the stock is different in different locations and classifies the inventory by location, for example, raw materials used in operations and finished goods, knowing that the raw materials are the products that supplied from suppliers. Thus, the efficiency and effective of inventory management depend on the studies that have taken from the observation of the turn-on inventory, which allows the ability actually to plan the inventory.
2-Purchasing:
(Choudhury Abul Anam Rashed, 2010) Play a critical role in the confirming the success of supply chain management, and activation of the efficiency of purchasing is a competitive advantage where the purchase is the first step in the effectiveness of the products, so it is imperative to measure the purchasing performance regarding:
The efficiency: the measure of the purchases efficiency is not looking to the quantity of purchases that have been bought by themselves but looking to the acquisition budget.
The effectiveness:the measure of the efficiency of the possibility of access to goods when needed at the lowest possible price, taking into consideration the possibility of changing prices, whether rising or falling taking into account the turnover rate of stock and the volume of liquidity.
3-Logistics:
(Fawcett, 2007) Logistic management is effective not only in the performance of the supply chain management but also in the performance of the company as it effectively affects the growth of the revenues of the company and reduce the operation cost and then strengthen its shares in the markets. The measurement of operating costs is facilitating the possibility of switching between alternatives to control expenditure and thus promote the management of assets. Although the above is the goal of each company, it is complicated to measure the performance of logistics comprehensively, where (Imam Baihaqi, 2008)both tried to assess the effectiveness and efficiency of the logistic process as follows:
Efficiency is the ability to manage the logistics to create a network of internal and external traffic can transfer products and services inside and outside the company.
Effectiveness is the ability of logistics management to interact with customers and to deliver products and services as soon as possible to the end user to gain the highest degree of customer satisfaction.
To be continued on the next week
Bibliography
Choudhury Abul Anam Rashed, A. A. (2010). Effect of Information and Knowledge Sharing on Supply Chain Performance: A Survey Based Approach. Joscm.
Fawcett, S. e. (2007). Information sharing and supply chain performance: the role of connectivity and willingness S. Croom, ed. Supply Chain Management. International Journal.
Imam Baihaqi, N. B. (2008). Information Sharing in Supply Chains: A Survey of Australian Manufacturing. International Review of Business Research.
O’Byrne, R. (2016, dec). https://www.logisticsbureau.com. Retrieved from https://www.logisticsbureau.com: https://www.logisticsbureau.com/the-3-pillars-of-supply-chain-management-and-why-their-alignment-matters/
Sunil Chopra, P. M. (2016). Supply Chain Management: Strategy, Planning, and Operation. Elsevier B.V.
