Characteristics of Successful Supply Chains Research Paper

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Traits of Supply Chain

To start with, any supply chain is purposed to have the capacity to satisfy the request of a consumer and distribute product from one location to another, so as to meet and fulfill the patterns of demand and supply. The supply chain not only encompasses the suppliers and manufacturers, but also takes into account retailers, distributors, warehouses and the consumers. For instance, with regard to a manufacturing entity, the supply chain consists of all the functions that are included in the receipt and fulfillment of a consumer's request. These consist of, but are not restricted to marketing, finance, product development, consumer service and also organizational operations (Mentzer et al., 2001). Supply chains ought to have different characteristics so as to be effective and successful. According to Poirier et al. (2010), successful corporations approach their supply chains in a manner that varies significantly from their less-successful competitors. To be specific, these companies constantly espouse particular traits that positively influence their operations in making them function more efficiently and profitably. The purpose of this paper will be to discuss these traits of supply chains that any company would be wise to follow.

Sound Supply Chain Strategy supported by Solid Leadership

Supply chain planning and the process of decision making ought to be incorporated within business strategies of a higher level to influence sustained progression across the comprehensive initiative. This trait takes into account coming up with a convincing strategy with a clear, effectively linked charter for constant process enhancement, all through the enterprise. The key to this is to have both vertical and horizontal functions during the course of the business and engagement with the individuals involved in the different process phases. In this manner, the organization is capable of effectively picking up the source and basis of problems, and implementing suitable solutions. Having this trait in their supply chains, companies can freely ascertain and overcome any cultural reservations and structural obstructions to required change (Poirier et al., 2010).

Focus on Financial Metrics

Virtually every corporation can profit from closer partnership between the supply chain and its financial departments. The objective is to assist these financial individuals to gain a deeper understanding on how supply chain initiatives can directly influence financial performance. Financial assistance with the implementation of balanced scorecards and activity-based costing (ABC) offer the sort of substantiation necessitated to establish the prospective value of a supply chain initiative (Brewer and Speh, 2000). More so, it also eradicates several actions that take up time, resources, and that which do not generate the benefits expected or projected. According to Poirier et al. (2010), when the financial function of an organization becomes vested and lays an emphasis on the supply chain, and pinpoints the area to add value to the business operations, there is a dramatic change in results.

Commitment to Innovation and Process Improvement

In the contemporary, it is not just about undertaking activities in a better manner, but it is rather undertaking such activities through a selection of enterprises, accorded to the business requirements. This implies establishing new ways of improving a supply chain and at the same time, effectively managing change. Business leaders utilize business techniques to attain optimal performance throughout their key process phases. Quality standards are applied to ascertain and get rid of sources of issues, ensure consumer satisfaction and also sustain the leadership position. In addition, business leaders also use outsourcing in a selective manner to different business partnerships to obtain optimal performances in their organizational networks. There are a number of techniques that are employed for process improvement. These include: total quality management, radio frequency identification technology (RFID) and enterprise resource planning (Poirier et al., 2010).

Collaboration with Selected Partners

This supply chain trait encompasses the segmentation of the different kinds of affiliations with different kinds of suppliers and consumers. In order to achieve greater performance within supply chains, consumer and supplier segmentation has to take place and thereafter work in tandem with major business partnerships. In the contemporary, business has come to be globalized. Taking this into consideration, business leaders are going further than just having an internal enhancement emphasis shared within the company to an extensive emphasis, in which business partners are meticulously chosen, and partnership is nurtured throughout the protracted enterprise. The formation of this kind of concerted organizational culture is an essential criterion for attaining a successful supply chain (Poirier et al., 2010).

Superior Strategic Sourcing

In order for a company to generate significant returns, it is necessary for it to place emphasis on its spending.

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Taking this into account from a supply chain standpoint, this implies concentrating on certain areas, such as procurement, purchasing and strategic sourcing. Evidences are indicative that this business function can bring about a great deal of profits. Together with other proficiencies, effectiveness in strategic sourcing necessitate an efficient supplier collection process, including an arduous decision making process. This is so as to establish the preferred time to maintain a process within the organization or have it outsourced to an overseas location. Strategic sourcing in a global manner for supply chains is the new trend. This is not only with the purpose of decreasing costs, but also in forming long-lasting affiliations with strategic suppliers (Poirier et al., 2010).

Excellence in Logistics Execution

A vital supply chain process is based on the several activities that are encompassed in logistics. These consist of transportation management, delivery strategies, warehouse management and supply chain implementation. Attaining efficacy in delivery and distribution comes about as a form of implementation. In essence, it is centered on having the fitting information on what is required and what can be delivered (Poirier et al., 2010).

Proficiency in Planning and Responsiveness

This particular supply chain trait takes into account the magnitude to which planning and implementation are extensive, and espouse stakeholders from different business functions, and the partnerships within the protracted enterprise. Basically, this encompasses having the fitting reaction structure that is accorded to what the consumers require and need. This capacity necessitates comprehensive and incessant attention throughout the different relationships within the supply chain. According to Poirier et al. (2010), projection in sales is one of the challenges faced by virtually all corporations. However, evidences show that employing this trait in tandem with sales and operations planning (S&OP) has instigated an increased level of competency. By making use of this technique, companies are able to undertake their planning with greater discipline and have the capacity to attain beneficial information to accord actual demand and actual supply. More so, Poirier et al. (2010) insist that corporations need to lay emphasis solely on enhancing their sales projection so as to have a better accord of the demand and supply levels, and at the same time, decrease inventories that is only necessary for the supply chain.

High Customer Integration and Satisfaction

Data and information obtained from surveys indicate that there are variations in the consumer approaches pursued by companies in the different leadership categories. This trait sheds light on the significance of consumer metrics in attaining business success. This trait places focus on the consumer and not on the inventory as other companies would have it. Leaders employ business intelligence and a superior consumer focus to gain a competitive advantage over rivals. This is with regards to consumer satisfaction and the generation of new sales revenues with lesser inventories. One of the key aspects is to make the most out of the present day consumer-facing technology to get past the frail data and information that is commonly obtained from sales projections (Poirier et al., 2010).

Ability to Anticipate and Manage Risk

In the future, the capability of an organization to manage supply chain risk practically and hand on, will, without doubt, necessitate greater focus. In actual fact, it will be a distinctive feature for advanced supply chains in the forthcoming periods. This particular trait expounds on the reduction of risk through supply chain capacities. In as much as a few distinctive companies have come to be adept at risk management throughout their supply chain initiatives, the outcomes are still yet to be impressive.

Globally Optimized Operations

This supply chain trait encompasses the aspect of adopting technology that is constantly changing. In the contemporary, business leaders are incessantly leveraging technology to facilitate collaboration in the supply chain. In addition, another aspect is the manner in which the information technology business function within the organization plays a great part in supply chain management (Poirier et al., 2010).

Conclusion

The aforementioned are traits that a supply chain must possess so as to be effective and successful. As perceived from past periods, there have been supply chains that have thrived and come to be exceedingly successful. Supply chains for companies, such as Walmart Corporation, have thrived; while for other companies have deteriorated due to lack of such traits (Cecer, 2014). This is largely linked to effective leadership and proper organizational strategies. Successful supply chains do not just come by accident. Rather, they come about as a result of….....

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