A study of factors affecting supply chain performance (2024)

FAQs

A study of factors affecting supply chain performance? ›

The major factors identified as supply chain structure, inventory control policy, information sharing, customer demand, forecasting method, lead time and review period length. The optimum selection of parameters of these factors improves the supply chain performance.

All environmental issues of a product chain including unexpected changes of customers, suppliers, competitors, and technologies have an impact on supply chains. The support of the government and uncertain aspects from overseas also play a vital role in shaping the success of your business.

Every business has its own set of measurements for tracking supply chain performance. However, the five most common measures are perfect order rate, supply chain costs, order fill rate, cash-to-cash cycle time, and inventory turnover.

Supply Chain Performance refers to the extended supply chain's activities in meeting end-customer requirements, including product availability, on-time delivery, and all the necessary inventory and capacity in the supply chain to deliver that performance in a responsive manner.

2021-22 supply chain overview

The most common supply chain challenges in 2021 and 2022 were port congestion, manufacturing delays, and extreme weather events (including hurricanes, tornadoes, and wildfires).

The key factors that affect the quality of supply chain performance include information technology, environmental uncertainties, supply chain relationship, value-added process, SCM performance, business management, customer satisfaction .

The supply curve in economics slopes upwards, suggesting the positive relationship between price and the amount supplied. Factors affecting supply include price of goods, price of related goods, production conditions, future expectations, input costs, number of suppliers, and government policy.

Key Takeaways

The five most critical phases of SCM are planning, sourcing, production, distribution, and returns.

What are the two measures of supply chain performance? ›

#]: qualitative measures (such as customer satisfaction and product quality) and quantitative measures (such as order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance, etc.).

Analyze key metrics like inventory turnover, transportation costs, warehousing expenses, fulfillment cycle time, on-time delivery, lead time, order accuracy and production cycle time to improve efficiency across your entire supply chain. Measuring these KPIs uncovers inefficiencies and gaps in the supply chain process.

Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery). Sometimes logistics is separate, and procurement may be included with Purchasing, depending upon how location specific the procurement activities are.

Partner Portal, a cloud-based vendor management solution, can help an organization implement the three C's - communication, collaboration, and change effectively and eventually synchronize the supply chain operation.

According to a study by PwC, 27% of supply chain executives believe that lack of synchronization is a significant barrier to their supply chain's effectiveness. Moreover, external factors such as market demand fluctuations, geopolitical tensions, and natural calamities also play a crucial role in causing disruptions.

Supply shifters include (1) prices of factors of production, (2) returns from alternative activities, (3) technology, (4) seller expectations, (5) natural events, and (6) the number of sellers.