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A benchmarking scheme for supply chain collaboration

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Simatupang & Sridharan (2004) assert that the high level of competition in global market is forcing companies to create a strong collaboration with partners who are involved in supply chain.  Organizations have developed collaborative schemes such as supply chain collaboration for the purpose of creating an effective supply chain performance.  In supply chain management, benchmarking is used as a management tool in searching practices, ideas and procedures which will lead to positive outcomes (Simatupang & Sridharan, 2004).  Through benchmarking, companies are able to develop performance standards which   lead to higher profitability.  The authors of this article assert that companies use benchmarking to compare products and services thereby increasing productivity.  In addition,  the benchmarking scheme  in performance metrics  help companies  with four best practices namely; delivery performance,  managing assets,  evaluating logistic cost and  offering flexibility and responsiveness (Simatupang & Sridharan, 2004).  The supply chain benchmarking   is a framework which companies use to manage supply chain performance.  In benchmarking, supply chain collaboration means that members should create collaborative practices in creating an effective supply chain performance. The collaborative relationship is fundamental in creating mutual benefits and strategic objectives.  

 

Security in the emerging economy is a concern. Organizations are demanding supply chain security management in order to have effective operations and achieve business goals (Zailani et al, 2014).   Security management in this case refers to the policies which should be followed in protecting supply chain assets and managing business risk.  The article asserts that there are two main supply chain security measures namely preventive and corrective measures.  The former stands for both physical and nonphysical security   measures towards preventing security-related risk such as cargo security. Corrective measures involve the use of corrective actions for unpredicted crisis. Corrective measures include resilience management and other measures which the company uses in returning the business into normal state (Zailani et al, 2014).  For a company to implement security measures and ensure security practices there is a need for security culture   where employees are involved in creating policies.  By having a security culture, employees can participate in creating security policies and minimize the overall risk.  The article asserts that in logistic industry, security practices leads to security performance in cargo management, HR management and information management.  Human intervention in security practices is fundamental in ensuring that security policies are followed in order to achieve operational security (Zailani et al, 2014).  In order ensure sulky chain security, a security culture should use internal and extern strategies in order to have positive effects.

 

Xing and Guoling assert that supply chain is a process which requires effective management in order to achieve good performance.  In this case, supply chain integration is fundamental in that all enterprises are involved in planning, inventory management and marketing for the purpose of achieving a competitive strength.  The point is that in order to have an effective management on products and services, companies should apply supply chain integration (Guoling & Xing, ND).  In order to understand the supply chain integration, the authors provides case study for LianHua supermarket.  The company has seven operation procedures and due to lack of supply chain integration, it faced challenged   in areas of interaction, platform function and integrity, supply management problems and lack of coordination.  The supply chain has hindered many developments in Lian Hua supermarket (Guoling & Xing, ND). However, the article asserts that the company has offered solution to these problems through implementing integrated supply chain management.  The strategy led to positive change in this company in areas of platform building and maintenance and   quality customer services to both suppliers and retailers. The article concludes that retail industries are facing challenges in competition market. However, the challenges can be eliminated by providing Supply Chain Web in order to maximize competitive capability and collaboration (Guoling & Xing, ND).

 

 In improving quality performance, organizations apply logistics and supply chain management.  This acts as a crucial factor in maintaining competitive edge in global markets (Xiang, 2014).  In order to understand the role of logistics and supply chain in operation management, it is important to define the terms. Logistics is the process of controlling the flow of goods and services. Supply chain management on the other hand is the process of coordinating business functions through supply chain. Both logistics and supply chain serve similar purposes in product circulation (Xiang, 2014). In modern industry, the article asserts that there are hot issues which need the implementation of both logistics and supply chain management.  First, the transportation management requires a biobjective optimization model where transportation will be minimized (Xiang, 2014). Sourcing and marketing is a hot issue which requires a great attention.  Sourcing contracts problems require an optimal procurement strategy in order to create an effective supply chain management. Focusing on economy and technology, logistics and supply chain will play a big role on e-business and the use of bid data (Xiang, 2014). Due to environmental related research and high global population, organization need a socioeconomic development through logistics and supply chain.

Reference

Simatupang M. Togar & Sridharan Ramaswami. (2004).  A benchmarking scheme for supply  chain

collaboration.  Institute of Information Sciences and Technology, Massey University, Palmerston

North, New Zealand

 

 Zailani. S,  Hanim., Subaramaniam K. Seva.,  Iranmanesh M,.   & Shaharudin. M Rizaimy. (2014). The

impact of supply chain security practices on security operational performance among logistics

service providers in an emerging economy Security culture as moderator. International

Journal of Physical Distribution & Logistics Management

 

 Guoling   Lao & Xing  Lei. Supply Chain System Integration in Retailing: A Case Study of LianHua. School

of Information Management and Engineering, Shanghai University of Finance and Economics,

Shanghai 200433, P.R. China This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Xiang Li. (2014). Operations Management of Logistics and Supply Chain: Issues and Directions. College of

Economic and Social Development, Nankai University, Tianjin 300071, China

 

 

 

 

961 Words  3 Pages
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