DRIVERS AND Metrics IN SUPPLY CHAIN

DRIVERS AND Metrics IN SUPPLY CHAIN

In understanding how companies can improve supply chain performance and efficiency in the ability to respond, it must examine the trigger of the supply chain among other things:

1. Facilities (facilities)
This triggers an actual physical location in supply chain network in which the product is stored, processed, and manufactured. Two main types: the production and storage. The debate over the role, location, capacity and flexibility of facilities have a significant impact on supply chain performance.

2. Supply
Triggers include all raw materials, goods in process and finished goods in the supply chain. Changing the inventory policy, can change the company's efficiency and ability to react.

3. Transportation
The trigger is required to move supplies from one point to another in the supply chain. Transportation may include various combinations of ways and paths with their respective characteristics.

4. Information
Triggers consist of data and analysis on facilities, supplies, transportation, cost, price, and customers, in the supply chain. The information enabled the most in the supply chain performance because it has a direct impact on each trigger and also assist management in improving the opportunities so that more efficient supply chain.

5. Resources
Trigger is a choice of who / part of supply chain activities that will be used as production, storage, transportation or management information. In a strategic level, this decision to decide whether the company's performance or function if that is outsourced by the company. Decisions relating to these triggers, impact on the ability to respond and the efficiency of supply chain companies.

6. Pricing (pricing)
These triggers determine how much the company will issue a price for goods and services contained in the supply chain. Pricing affects the behavior of buyers of goods and services, thus can have an impact on supply chain performance.

From each of these supply chain triggers, triggers interact with other supply chain to determine the level of response capability and efficiency. As a result, the structure of these triggers to determine if and how the impact on supply chain performance.

Triggers Compilation Framework
To achieve success, companies must prepare well the logical combination of the three drivers and three cross-functional. For each trigger, supply chain managers must make trade-off between efficiency and ability to react, based on interaction with other triggers. This combination have an impact on the trigger then determines the ability to respond and benefit the entire supply chain.

Most firms, starting with competitive strategy and then decide whether the supply chain strategy that will be used. This supply chain strategy determines how the supply chain should make the company easier and more efficient action.

Facilities
Role in the supply chain, the facility is the location where the supply chain. With the facilities, inventories can be changed both in the manufacturing process and stored.
In a competitive strategy, the role of the facility is a key driver of supply chain performance and efficiency of response capabilities.

The decision in the facility will help the company's success strategy. Component decision should be analyzed in the form of facilities that role, location, capacity, and facilities associated with the metrics.

Supply
Inventories in the supply chain is a meeting between demand and supply. Role in the supply chain to increase the number of requests that can be filled with products that are ready and there when customers need it. Another significant role is in reducing costs by economies of scale that existed during the production and distribution.

Inventories can be either raw materials, goods in process and finished goods. Inventory is a source of major costs in the supply chain and has a big impact in responding kemempuan company. Meanwhile, the role of supply in competitive strategy is to support the company's competitive strategy.
Components of inventory decisions that need to be analyzed in the form of cycle inventory, safety stock, seasonal inventory, level of ability prosuksi, and supplies associated with metrics.

Transportation
Transportation to move products between different places in the supply chain. Just like other triggers, transport also have a huge impact and efficiency of the company's ability to respond. Transport more quickly cause supply chains to more quickly respond to but not more efficient. Type of transportation companies also can affect the supply and location of facilities in the supply chain.

Role in the company's competitive strategy is to describe the state of the company regarding the consideration of the needs of target customers. If companies want a competitive strategy of target customers with the level of demand that has a high response and customers also have the ability to pay is high then the firm should use transportation as a trigger for better supply chain to respond.
Components of transportation decisions that need to be analyzed in the form of transport network design, the choice of means of transport, and transport-related metrics.

Information
Information is affecting every part of the supply chain. Information provide or serve the relationship between the various parts in the supply chain, so as to coordinate and maximize total supply chain profitability. Information also is important in the operations on each part of supply chain.

The role of information in competitive strategy in a company used to make the company more responsive and more efficient. Rapid growth in importance of information technology was evidence of the impact of information that can develop the company.
Component decision should be analyzed in the form of information push vs. pull, coordination and information sharing, forecasting and comprehensive planning, technology that enables and information related to metrics.

Resources
Resource is a set of business processes required in the purchase of goods and services. Managers must first decide which tasks will be outsourced and that his will be done by the company itself.
Role in competitive strategy is very important that the level of efficiency and ability to respond will be accepted by the supply chain. In some examples of companies outsource to respond to 3 parts if too expensive under on the company in developing response capabilities.
Components of resource decisions that need to be analyzed in the form of in-house or outsourced, supplier selection, procurement, resource-related metrics.

Pricing (Pricing)
Pricing is the process whereby companies decide how much to charge fees to customers for goods and services produced by the company. Pricing impact on customer segments that prefer to buy products, as well as customer expectations. This is a direct impact on supply chain capabilities to respond to the same level as well as the nature of demand in the supply chain.

The role of pricing in competitive strategy of targeting customers. This results in the importance of companies to develop supply chains that can bring together two different requirements.
Components of pricing decisions that need to be analyzed in the form of pricing and economies of scale, Everyday low pricing vs. high-low pricing, fixed price versus menu pricing, and pricing related to metrics.

Barriers to achieving strategic fit
The key to achieving strategic fit is the company's ability to find a balance between the ability to respond and the efficiency that would bring together the needs of target customers. This decision should be allocated in the responsiveness spectrum where companies are faced with many obstacles.

These barriers can increase the difficulty the company in creating the ideal balance, but on the other hand these constraints can increase the chance the company to improve supply chain management.
The following barriers, which if could be addressed by managers, can increase a company's ability to obtain maximum profitability of the supply chain, namely:

Increasing product variety
Reduced product life cycles
Increasing customer demand
Solving supply chain ownership
Globalization
Difficulty implementing new strategies

Many obstacles, such as the emergence of variations and short product life cycles, can cause increasing difficulty in achieving supply chain strategy fit. The existence of barriers-hamabatan can create great opportunities for companies to use supply chain management in gaining competitive advantage.
Describing the main obstacle in the company to help manage supply chains successfully. The above constraints are factors that can hamper the performance of the supply chain.








Reference:
Chopra, Sunil and Peter Meindl. 2007. Supply Chain Management: Strategy, Planning & Operations, 3rd Edition. Pearson Prentice Hall.