Introducing sustainability to the supply chain initiatives is a result of some key drivers. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency depending on the business requirements. Supply chain management is the coordination of production, inventory,location,and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. Smes with the driver cost reduction to engage in supply chain partnership are engaged in. To increase a firms performance the drivers of supply chain management are much valuable soni and kodali, 2010. We manage our supply chain based on the principle of an ethical distribution process. Supply chain drivers, partnerships and performance of high. Define the key metrics that track the performance of the supply chain in terms of each driver. Drivers of supply chain performance to understand how a company can improve supply chain performance in terms of responsiveness and efficiency, we must examine the logistical and crossfunctional drivers of supply chain performance.
A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. These five drivers provide a useful framework in which to think about the supply chain capabilities you need. To provide knowledge related to supply chain drivers. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency. Supply chain excellence is about balance and discipline over a multiyear journey. It usually includes gathering the required raw materials, producing the material and finally distributing it to the customer in the final stage. Information is crucial to supply chain performance because it provides the foundation on which supply chain processes execute transactions and.
As we mapped the incentive landscape, we found a typical collection of different incentives and orientations. Pdf a lot of innovation happening nowadays is not so much in the products as in the processes. Crossfunctional alignment in supply chain planning. Effect of push technologies and pull demand on the digital supply chain. In addition, the study focuses on the mediating effect of green supply chain integration in the relationship between the key supply chain drivers and supply chain sustainability. We identify three main inventory drivers of a supply chain strategy focusing. The supply chain is responsible for getting those coffee beans across the world and to your kitchen. The best companies manage the supply chain as a system, understanding the relationships between growth, costs, cycles and complexity. Apr 01, 2005 this paper aims to report on findings of a cross. As you investigate how a supply chain works, you learn about the demands from the downstream links and optimize your effici. The drivers of a sustainable supply chain management can be either internal or external. Coordinating daily activities related to the functioning of other supply chain drivers. Information supply chain structure logistical drivers how to achieve 5. The supply chain must then use the three logistical and three crossfunctional drivers to reach the performance level the supply chain strategy dictates and maximize the supply chain profits.
As called out by dod supply chain materiel management procedures in dod manual 4140. In this instance, bread begins its journey with the farmer who sows the seeds and sells the wheat to the businessman, who in. Vice president and group director, supply chain and global supply management practices. Introduction trends in supply chain management scm, such as the globalization of market economies, shorter product life cycles, digitalization, and multifaceted customer expectations, along with. Drivers of supply chain performance inventory transportation facilities information inventory all of the raw materials, work in process wip, and finished goods within the supply chain. A free powerpoint ppt presentation displayed as a flash slide show on id.
In second phase the data from internationally published articles were collected and suggest a framework to manage the drivers of supply chain performance. In addition to the drivers of sustainable supply chain, there are some obstacles that create. Samsung electronics ban the use of conflict minerals including tantalum, tin, tungsten and gold that are mined unethically in conflict areas in 10 african locations, including democratic republic of the congo dr congo. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.
Pdf drivers for improving supply chain performance. Cooper 2000 issues in supply chain management, industrial marketing. Supply chain drivers free download as powerpoint presentation. In the apics dictionary, 14th edition, cost driver is synonymous with driver and is defined as, in activitybased costing, an operation that influences the quantity of. Introduction supply chain is a complex network of many business entities who work seamlessly and involved in upstream and downstream flow of goods, services, information, finances etc. Economic drivers define the positive and negative outcomes of a supply chain decision. The bestinclass are 70% more likely to segment demand by key product, customer, or channel characteristics. Supply chain management scm definition investopedia. Findings the whole study concluded that there are six drivers of supply chain performance in literature that. How coronavirus will affect the global supply chain. Im going to reveal to you the secret method that allows you to get the equivalent exercise of 45 minutes at the gym, in just a few minutes per day. The eight components of supply chain management iqualify uk.
Evaluating supply chain drivers and obstacles 3 outline drivers of supply chain performance a framework for structuring drivers facilities inventory transportation. We identified a highly differentiated organization with a successful supply chain planning process and used grounded theory development to identify the key drivers of successful crossfunctional integration. A lesson in supply chain risk management a quarantine put supply chains risk management strategies to the test as it left manufacturing facilities without workers needed to reach full production, reduced demand for ocean freight and cut air freight capacity. Supply chain management scm is the active streamlining of a business supply side activities to maximize customer value and gain a competitive advantage in the. Supply chain drivers supply chain management inventory. A number of drivers can be identified that are core to this investment emphasis. With chemicals becoming an integral part of a range of industries, including construction, heavy machinery and food additives, the industry can no longer be considered generic. Considerations for supply chain drivers driver efficiency responsiveness 1.
Most supply chain and operations management professionals probably have their own definitions and examples. Without an intact supply chain, a manufacturing business will starve for key inputs into its production process. Investments in improving supply chain capabilities should not be delayed the 2009 drivers of sustainable supply chain management practice 18th annual trends and issues in logistics and transportation 17. The department of defense dod supply chain metrics guide is the main source for detailed information on the supply chain metrics used by the department. Exploring supply chain cost drivers apics magazine. Drivers of supply chain management final free download as powerpoint presentation. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. In the literature, a multitude of drivers of sscm are described.
Using smart sensors to drive supply chain innovation 06 benefits of smart sensors in the supply chain value drivers for smart sensors smart sensors increase the level of automated collection and processing of data and broaden management visibility across the supply chain to help companies reduce operating costs, improve asset efficiency. May 02, 2019 in fact, supply chain management is the wide range of activities that are essential to plan, manage and implement the flow of a product. The paper aims to provide a systematic overview of the drivers and barriers for food retailers to implement corporate supply chain responsibility. Supply chain complexity, drivers of supply chain complexity, management of complexity. Logistics and supply chain management continue to transform the. Pdf the impact of supply chain performance drivers and value. Drivers of supply chain management final inventory. Supply chain management is the integration of key business processes from end user through.
The calculation of these outcomes requires the actual observation of the yettobeobserved demand, but if a demand forecast is available, the outcomes can be simulated in turn. Supply chain strategy efficiency responsiveness supply chain structure logistical drivers facilities inventory transportation information cross functional drivers sourcing pricing 5 facilities role in the supply chain thh fth l hi the where of the supply chain. Each driver depends upon efficiency or cost and responsiveness. The research is based on a literature analysis and semi. Explain the role of the major drivers of the supply chain. Drivers for improving supply chain performance of paul hofmann. The bestinclass are 59% more likely to manage outside suppliers and partners in the design process than all others. Supply chain management drivers and sustainability of.
Supply chain strategy efficiency responsiveness facilities inventory transportation information supply chain structure cross functional drivers sourcing pricing logistical drivers facilities role in the supply chain the where of the supply chain manufacturing or storage warehouses role in the competitive strategy. This report is a part of mits supply chain 2020 sc2020 research project focusing on toyotas production system and supply chain. Drivers of sustainable supply chain management free essay. Supply chain management supply chain management managing complex and dynamic supply and demand networks. Pdf the impact of supply chain performance drivers and. With many gas stations and restaurants closing or reducing their operations in response to covid19, truck drivers are struggling to access meals, showers, and rest. Drivers of supply chain university of texas at dallas.
Green supply chain management is still under developing stage in pakistan. Using smart sensors to drive supply chain innovation. Because of these disruptions, lscms have been experimenting several effects while putting in substantial efforts to. Information low costslowno duplication high cost streamlinedreliable 5. Internal sustainability drivers include internal business processes while the external are legislation, environmental drivers, customers, and social drivers hanuv 35.
The eight components of supply chain management simple bread and butter with which we eat each day, actually gets to us through several processes. Discuss the role of each driver in creating strategic fit between the supply chain strategy and the competitive strategy. Drivers of sustainable supply chain management mdpi. The importance of integrated, globally optimised supply. As you investigate how a supply chain works, you learn about the demands it faces and the capabilities it needs to be successful. Supply chain leaders recognize that they have more than one supply chain. A manufacturing cost and supply chain analysis of sic power. Drivers of supply chain performance inventory transportation facilities information inventory all of the raw materials, work in process wip. The study has identified several factors those can play a vital role in the adoption of green supply chain management. Information is a key supply chain driver because it serves as the glue that allows the other supply chain drivers to work together with the goal of creating an integrated, coordinated supply chain. The main objective of the study was to assess factors affecting the effectiveness of supply chain management practices in kenyan public sector case of ministry of. Although this framework is generally viewed from the top down, in many instances, a study of the six drivers may indicate the need to change the supply.
The primary objective of this paper is to examine supply chain management drivers and their motivation for the sustainability of the supply chain. Drivers of supply chain performance enhancing organizational. This document compiles best practices for jurisdictions to consider how to ensure these services remain available to truck drivers. We recommend the definition of supply chain management developed and used by the global supply chain forum. There is a difference between the concept of supply chain. There is a difference between the concept of supply chain manage.
The main objective of the study was to assess factors affecting the effectiveness of supply chain management practices in kenyan public sector case of ministry of finance with the aim of assessing the effect of supplier relationship on the. Facilities consolidation dedicated proximity flexibility 4. Most supply chain managers spend a lot of their time looking for ways to reduce costs. The supply chain management processes article pdf available in the international journal of logistics management 122. Supply chain sc drivers and obstacles drivers of sc performance facilities inventory transportation information sourcing pricing the discussion here is mainly concerned with how these drivers are used in the design, planning and operation of supply chain facilities. While static complexity describes the structure of the supply chain, the number and the variety of its components and strengths of interactions between.
Pdf supply chain management has been a major section of competitive strategy to improve organisational productivity and profitability. Each elements subcategories are then weighted based upon the experiences incurred by the companyies which uses this model. Drivers of sustainable supply chain management practice. Studies on supply chain complexity mainly use the static and dynamic complexity distinction.
For each driver, managers must make tradeoffs between efficiency cost and responsiveness. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency depending on changing business requirements. In the apics dictionary, 14th edition, cost driver is synonymous with driver and is defined as, in activitybased costing, an operation that influences the quantity of work required and cost of an activity. Supply chain capabilities are guided by the decisions you make regarding the five supply chain drivers. How digitization makes the supply chain more efficient, agile, and. A concise, applied and strategic introduction to the subject of logistics and supply chain management, perfect for modern managers and students of logistics and supply chain management. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it. But one of the big challenges with supply chains is that things are often interconnected, so making a change in one area to lower costs can cause a change somewhere else that actually increases the cost. Supply chain management in process industries infoscience epfl. Drivers and obstacles for creating sustainable supply chain. In process industries, which by definition involve manufacturing, supply chain.
Identify the major drivers of supply chain performance. The six key drivers of supply chain excellence the purpose of supply chain execution sce is to provide optimum coordination of all tasks performed by the various supply chain partners, whilst constantly taking into account changes in framework conditions, so that every link in the chain is equally able to bear the load. Economic drivers in supply chain quantitative supply chain. Drivers of supply chain performance management are as facilities, logistic management, transportation, inventory management, information distribution, pricing and sourcing. Pdf logistics management and strategy competing through. Supply chain development is guided by the decisions you make about the five supply chain drivers. How five drivers impact the chemicals supply chain of. The future of chemicals is closely linked to that of its customers, and hence it transforms in tandem with them.
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