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Drivers of Supply Chain Performance

The document discusses the four main drivers of supply chain performance: inventory requirements, transportation, facilities, and information. Inventory exists due to mismatches between supply and demand and impacts competitive strategy. Transportation moves products and involves cost vs speed tradeoffs. Facilities include storage and production locations, and decisions about them affect performance. Information connects supply chain stages and must balance responsiveness with efficiency.

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rakum81
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77 views5 pages

Drivers of Supply Chain Performance

The document discusses the four main drivers of supply chain performance: inventory requirements, transportation, facilities, and information. Inventory exists due to mismatches between supply and demand and impacts competitive strategy. Transportation moves products and involves cost vs speed tradeoffs. Facilities include storage and production locations, and decisions about them affect performance. Information connects supply chain stages and must balance responsiveness with efficiency.

Uploaded by

rakum81
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The Four Drivers of Supply Chain

Performance
Driver 1: Inventory Requirements

• Inventory "stockage" exists in all supply chains because of


a mismatch between supply and demand

• Inventory plays a significant role in a supply chain's ability


to support a firm's competitive strategy

• A supply chain manager must make routine decisions to


create a more responsive and more efficient supply chain
Driver 2: Transportation

• Transportation moves the product between different


locations in a supply chain

• Transportation is prominent in a company's competitive


strategy

• The fundamental trade-off for transportation is cost


(efficiency) versus speed (responsiveness)
Driver 3: Facilities

• Facilities include all locations in the


supply chain to store, assemble, or
fabricate inventory

• Decisions regarding location,


capacity, and flexibility of facilities
significantly affect supply chain
performance

• In DoD, depot and field repair


facilities are cornerstones of the
supply chain
Driver 4: Information

• Information serves as the connection between the supply


chain's various stages

• Information and information systems are an important part of


balancing responsiveness versus efficiency

• Businesses must trade-off between efficiency and


responsiveness when trying to include more supply chain
information

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