Logistics :

• Inventory
• Supply Chain
• Transportation
• Warehousing

Performance Measurements In The Supply Chain

      Performance measurements in supply chain can be broadly categorized into the following types: More..

Supply chain used by a company is one among the most valuable assets to its business and to its vendors. However, supply chains’ designs and their management involve a hefty price. SCM’s (Supply chain management) business value can be enhanced only if the company is willing to adjust their conventional routines, way of working, and attitudes according to the requirements of its value chain. In case the company fails to do so, its supply chain may fail miserably causing it to lose a significant part of its fortune in the entire process.

In today’s competitive scenario, majority of organizations have failed to completely realize the business value offered by effective SCM. Consequently, supply chains of majority of businesses continue to remain an important area of unharnessed potential or untapped value. When it comes to enhancing the business value of SCM, majority of executives typically focus only on reducing costs involved in SCM and on perking up the related processes.

However, to capture maximum value from upgrading initiatives of SCM, business leaders must not forget some of the basic SCM fundamentals and issues, such as:

• Distribution centers that are under-utilized should be done away with to reduce costs
• Inventory that is in excess is always a waste and should be avoided.
• Transportation should be planned in a way to ensure that customers are offered best possible prices.

In short, to tap greater business value of SCM, it is necessary to design supply chains in a way to keep the services and costs involved within a certain range that is ‘acceptable’.

Secondly, all the development and upgrading initiatives should be in accordance to a pre-determined business objective. Thirdly, business models should be developed in a way that they include all the processes, constraints, and core assumptions existing within the supply chains. Last but not the least, it is vital to develop momentum and develop a ‘cycle’ of incessant improvement.

More Articles :

• Business Value Of Supply Chain Management
• Performance Measurements In The Supply Chain
• Risks In Supply Chain Management
• Supply Chain Management In Information Technology