Supply chain is defined as all organisations and activities linked with the flow and transformation of raw materials, through to the consumer, including all the associated information and fiscal flows (Skjott-Larsen 2007). It is takes place in virtually all industries and is used by most companies as a leverage to improve company profitability, performance and productivity. How as competition intensifies among companies, especially in enhancing their supply chain management, innovation is considered key to gaining competitive advantage. According to Seo, et al. article “The impact of innovativeness on supply chain performance: is supply chain integration a missing link”, they suggest that innovation is accepted as a factor to leverage performance (Seo 2014). However, they further state that supply chain integration (SCI) is the pathway to improved social chain performance (SCP) (2014).
According to Han, SCI is the foundational role in the integration, close alignment and coordination of vital operations
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(2014) are that innovativeness in supply chain has positive outcome on SCI and SCP, and that customer integration has no mediating role in the relationship between SCI and SCP. However, I think that further research on the issue of innovation in influencing changes in SCI and SCP should be done. Foremost, what forms of innovation on SCI influence SCP? According to Fuglsang, innovation is the process of transforming ideas into products or services that generate value that a customer is willing to pay (2008). This is because supply chain has traditionally followed the same routine in terms of processes and operations of converting raw materials into finished goods, regardless of the sector in which is operating. However, since supply chain is diverse and includes flow and transformation of money and information, the activities involved in this case are not conventional and may undergo innovation to improve on service
Supply chain innovations should ensure on-shelf availability at retail outlets, improving collaboration between vendors and retailers, translating supply chain costs to product pricing, lean inventory and real time replenishment. Wal-Mart should ensure that process differentiation to determine the right method of moving products with varying demand characteristics (Akehurst, C., & Alexander, N. (1995)
Hoover, E., Eloranta, E., Holmström, J. & Huttunen, K. (2002). ‘Managing the Demand-Supply Chain: Value Innovations for Customer Satisfaction.’ USA: John Wiley & Sons.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
In many instances, firms have not considered the impact of their actions on the supply chain and its long-term competitiveness and profitability. According to Wisner et al (2006), the “I win, you lose” silo mentality manifests itself in the form of using cheaper suppliers, paying little attention to the needs of customers, and assigning few resources to new products and service design. Eventually, these firms will create quality, cost, delivery timing, and other customer service problems that are detrimental to the supply chain. Cachon (2005), in his paper, describes silo mentality as the most significant barrier to overcome most of in supply chain management. Internally, the silo effect can also be exist among departments. The transportation manager for instance, may be trying to reduce annual transportation costs while inadvertently cause safety stocks to be higher, shortages, and to deteriorate customer service level. In order to overcome the silo mentality, the enterprise must strive to align supply chain goals and the goals and objective of the firm. Functional and decisions must be made while considering the impact on the entire enterprise profit and those of the supply chain.
To support this assertion Krivda (2004) cites the findings of AMR Research Inc. According to this research, companies that have adopted proper supply chain operation and management enjoy greater performance as determined by various financial measures. Specifically, excellence in supply chain can result in relatively accurate demand forecast therefore making such companies realize higher profit margin by approximate 5%, a 15% percent lower inventory, a stronger “perfect order rating” rating of up to 17%, and a comparative shorter cash-to-cash cycle time of about 35% (Krivda 2004).
In order to have both an effective and efficient supply chain, managers should be focused on trying to achieve not only a cost effective supply chain, but a flexible one. In today’s economy, because the market is so volatile, trendy, and competitive, flexibility is the key to success. In order to respond to customers’ ever-increasing requirement demands, market leaders have positioned themselves well by continually investing in new key performance indicators, additional technology, improved supply chain networks, and streamlining efforts (Source One INC, 2013). This helps to maximize flexibility and overall responsiveness. With increased flexibility, leaders recognize that supply chains must be adjusted to meet different customer needs. In my research I will analyze Gate Gourmet’s use of information technology and the importance of supply chain integration.
The increased competitions between businesses in the market resulted in increasing product offerings from these businesses which in turn shortened product life cycles. As a result, it has become essential for these businesses to adapt the new technologies to better manage and control their supply chain management. So, experts have identified the successful needed practices to develop more effective supply chain managements.
"A lot of companies think of supply chain as a cost centre. They don’t always see it as helping to funnel top-line growth." Supply chain touches practically every part of operations inside an organization: from determining client interest, to sourcing crude materials, to assembling, distribution and returns Supply chain is to adjust supply and request, for example the demand for goods and services. You need to get the right quantity and quality of goods and services
Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed with other organizations to increase customer service
(Slack. et al, 2013) The roles of technology and talents are involved with continuous improvement. For the technology role, “If you think expensive technology changes are the gatekeepers for continuous improvement, think again”(Keller, 2011). Continuous improvement focuses mainly on quality, cost, delivery, and services in business processes. After that identify and improve the processes that contribute these factors. There is no doubt that generally technology cause the occurrence of continuous improvement; however, the company can improve these processes without absolute needed of technology. The company could improve the business processes with continuous improvement tools and techniques. Technology role is essential in the processes such as production, design, and information system (Keller, 2011). On the other hand, talent appears to be more essential than technology. Gonsalvez (2014) claims that although technology and talent are the key factors in the quest of continuous improvement, technologies grow in the faster pace than companies able to adapted and perceived those new technologies. The knowledge of supply chain from talent emerges to be more important. Talent is needed to coordinate technology and knowledge along with effectively operates this combination in the company (Gonsalvez, 2014). To be talent in supply chain management is required more than supply chain knowledge “ modern-day supply chain management is about much more than coordinating the physical movement of goods from one point to another. It encompasses procurement expertise, supplier management, knowledge of international trade trends and regulations, information-technology prowess and customer-relationship management, to name but a few key aspects of the discipline ” (Bowman, 2013). Also there are demanding skill that needed to be in supply chain management role. Supply chain management is not just math. This
To improve their performance and to succeed in the digital world, firms must manage people, technology, and processes across the entire value chain. Supply Chain Management facilitates the interaction among different factors and partners in the system. Thus, the supply chain has evolved to a Supply Chain Network due to the development of the Internet and the technological advancements. The study describes the Supply Chain Management System.
Lee, H. L. (2000). Creating value through supply chain integration. Supply chain management review, 4(4), 30-36.
A definition of Science is the knowledge of nature that can be replicated and tested because it is published. In addition it is usually applied in universities and some firms. It utilizes ceteris paribus and the findings can be generalized. On the other hand technology is the non-codified application of knowledge and therefore difficult to reproduce or imitate.
Technology – as defined by the US National Academy of Science (cited in Jones 1996, p.17) –
Science and Technology has been around from the beginning of time. It evolved from the everyday efforts of people trying to improve their way of life. Throughout history, humankind has developed and utilized tools, machines, and techniques without understanding how or why they worked or comprehending their physical or chemical composition. Before we go any further a definition has to be given for both Science and Technology because they are both different in their own right even though the two are almost indistinguishable. According to the Oxford Dictionary Technology can be defined as the knowledge or use of the mechanical arts and applied sciences, while Science can be defined as the branch of knowledge involving systematized observation and experiment. Science can be further divided into three separate categories; Pure, Applied and Natural Sciences. In addition technology is often defined as applied science, it is simply the application of scientific knowledge to achieve a specific human purpose, however, historical evidence suggests technology is a product of science.