High-Performance Supply Chains
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High-Performance Supply Chains
The video under review provides a presentation on metrics in supply chain management and how they help achieve higher performance in the supply chain (YouTube, 2015). Higher performance supply chains use available parameters in the proper way to make strategic decisions. They develop appropriate means of ensuring effectiveness of the metrics in use. According to YouTube (2015), in the video metrics higher performance supply chains are commonly process, cross-functional and not purely functional. A measure of company supply chain should cut across all the departments for effectiveness. It should not just concentrate in one department such as that of sales.
It is essential that a corporation track the process its operations flow to develop metrics that are relevant to sections of the company. Developing measures that are functional are commonly not useful for a firm as balancing of the parameters, financial and non-financial measures are. Omitting nonfinancial aspects in the measure of an organization is not proper, and the metrics that are developed must get integration into the company culture according to YouTube, (2015) review. The metrics integration and application of the minor ones already available for a firm provide linkage of the metrics to compensation.
To sustain higher performance, there has to be an active link between the measures and compensation to those who are directly responsible for the adjustments. Failing to provide links and offering compensation may weaken the performance and result to failure (YouTube, 2015). Technological tools and software are often in use in most companies to keep track of the process and the measures in the enterprise. This gives appropriate comparisons that enable adjustments and support decision making. According to YouTube (2015) review, technology ensures that there are no informational gaps in the processes of the company necessary in decision making to sustain and improve higher supply chain management.
Companies do not compete within themselves as single entities, but within the wider supply chain that extends globally. The connection across the string and competitiveness of the processes dictate the strength. There are core aspects of a high-performance supply chain that the video (YouTube, 2015) highlights that have to interrelate to ensure high quality is achievable. Companies must have customers as core focus and strive to meet their needs in the highly dynamic economies and diverse global markets.
The capacity of a business has to be crafted to serve demand of the markets and consumers to obtain profitable growth and sustain performance in the supply chain (Chase, & Jacobs, 2014). Companies are working to make efficient their facility layouts and improve the organizational climate. This is helping to match strategies for an effective supply chain that improves profitability and maximize output. According to Chase, & Jacobs (2014), supply chain environment is becoming more complex and competitive than ever before.
Companies are therefore striving to achieve and maintain higher performances that would see their processes match the level of competitiveness and transformation of the global environment. According to YouTube (2015) review, the institution must ensure sufficient flow within their processes to sustain capacities with appropriate measures that will see it achieve higher performance. Companies strive to develop strategies that enable them have sustainable positions linked with its processes to ensure greater performance capacity.