Supply Chain Management

Supply Chain Management

Introduction

The performance of supply chain has positively impacted from strategy adopted by supply chain. This strategy directly impacts the performance of marketing and financial performance. These results help to sustain the positive relationship between organizational performance and logistics performance inside the manufacturing sector.

Why, how, and under what conditions do firms respond to supply chain disruptions? These are important questions, given that logistics firms around the world are increasingly exposed to disruptions that impede their supply chain relationships and associated operations. This study applies information processing and resource dependence perspectives to identify the repertoire of strategic responses to supply chain disruptions and to devise and test a model that explains the occurrence of the alternative responses. The findings suggest that these responses are shaped by the “stability motive” and by “interpretative postures,” which evolve from past experiences. Global competition has shaped complex and tightly coupled inter firm networks in which disruptions in the flows of materials, information, and funds have become the norm.

Discussion

Re-Engineering in Supply Chain Management

According to author perspectives, logistics re-engineering can bring about significant improvements in the order fulfillment of customers. They stress the point that re-engineering is not much about making incremental improvements to the existing processes, but rather to revolutionize those processes. For this purpose, the focus should shift from problem solving to proactive improvements. The re-engineered system in addition to carrying lesser inventory resulted in a cost reduction. Re-engineering has potential to bring about improvements in the system. The goals of the logistics system—effectiveness and efficiency are determined by a number of interrelated factors. The optimization of each of the factors may not optimize the entire system. Sobotka (2000) reported the use of simulation modeling in logistics re-engineering by taking the example of construction industry..Lai et al. (2003) reported the use of system dynamics modeling for analysis and comparison of re-engineering strategies of supply and logistic chains.

Steps of Reengineering Supply Chain Management

Study of the Supply Chain Processes in the Organization

Deciding the Model Aggregates and Boundary

Construction of a Detailed Model

Model Testing and Validation

Developing Alternative Configurations for the Supply Chain

Comparison of Different Configurations

Supply Chain Disruption in Air Cargo Incorporation, America

A supply chain disruption may have direct and indirect negative effects on Air Cargo performance objectives. If the deviation from expected performance outcomes is noticed and exceptional (i.e., it exceeds some level defined as acceptable), it evokes non routine information processing and interpretation activities. The impact of a disruption represents a critical piece of information that a Air Cargo interprets to construct its beliefs about the stability of the affected exchange. As adverse events increase in magnitude, so do urgency about questioning existing behaviors, rules, strategies, or structures in which the firm gathers information about this event to make sense of it.

Supply chain disruption orientation. From an information processing perspective, a supply chain disruption requires a response when it indicates a mismatch between Air Cargo's information processing capabilities and its information processing needs. However, as such a mismatch is difficult to infer from a single ...