Three types of alignment in supply chain: Supply chain and organizational strategies

Three types of alignment in supply chain: Supply chain and organizational strategies

Student 2: Saranphon

Introduction

This week’s chapter focus on two interesting topics; Chapter 12 discusses mostly about Aligning Supply Chain and Chapter 13, which talks about Supply Chain Performance Measurement and Financial. Chapter 12 starts with the key concept of aligning in supply chain which consists of three types Supply chain and organizational strategies, Supply and demand, and Supply chain and trading partners, and the topic of relationship in supply chain which consists of several process, such as performing strategic assessment, evaluate alternative, or structuring operation model (Coyle, Langley, Novack, & Gibson, 2017). On the Chapter 13, it talks about the dimensions of supply chain metric as many organizations today have realized that performance metrics are critical to managing the business and achieving desired results, and measurable metrics that enable the organization to gauge whether or not these objectives are achieved (Coyle, Langley, Novack, & Gibson, 2017).

Question 1

To get the better understanding about Chapter 12, there are terms referring over the chapter as they are basically the ground of the topic, Aligning Supply Chain. To begin, the word, alignment, meaning as one of the characteristics of successful supply chain that aims to achieve. The process of alignment consists of people, processes, and technologies which are essential to the planning and operational aspects of supply chains (Coyle, Langley, Novack, & Gibson, 2017).

Three types of alignment in supply chain: Supply chain and organizational strategies, which simply refers to ‘being on the same page’ successful company requires that the strategies, plans, and functioning of the supply chain are aligned (Coyle, Langley, Novack, & Gibson, 2017). Secondly, supply and demand, alignment between supply and demand will help to maximize the extent to which products and services are available to customers when and where they are needed (Coyle, Langley, Novack, & Gibson, 2017). Lastly, supply chain and trading partners, refers to going beyond the boundaries of an individual organization.

After alignment, the concept of relationship in supply chain is accountable. Relationships are what will carry the logistics industry into the future (Eleventh Annual State of Logistics Report)

The primary focus for relationship in supply chain, it merely pinpoint on a process model for forming and sustaining supply chain relationships, which illustrate how the model is being applied from the perspective of a manufacturing firm, as it considers the possibility of forming a relationship with a supplier of logistics services (Coyle, Langley, Novack, & Gibson, 2017). Perform Strategic Assessment, Decision to Form Relationship, Evaluate Alternatives,

Potential Partner Capabilities or Company Needs and Priorities, Select Partner, Structure Operating Model, and Implementation & Continuous Improvement (Coyle, Langley, Novack, & Gibson, 2017).

The third term, collaboration occurs among the participants who are involvedCollaboration may be thought of as a “business practice that encourages individual organizations to share information and resources for the benefit of all” (Coyle, Langley, Novack, & Gibson, 2017).

collaboration allows companies to “leverage each other on an operational basis so that together they perform better than they did separately (Dr. Hammer)

There are three types of collaboration: vertical, horizontal, and full. Vertical collaboration refers to collaboration typically among buyers and sellers in the supply chain. Horizontal collaboration refers to relationships that may be buyer to buyer and/or seller to seller, and in some cases even between competitors (including providers of logistics services Full collaboration is the dynamic combination of both vertical and horizontal collaboration (Coyle, Langley, Novack, & Gibson, 2017)

Question 2

The basic type of relationship in supply chain, the range of relationship types extends from that of a vendor to that of a strategic alliance. Vendor is represented simply by a seller or provider of a product or service, such that there is little or no integration. Collaboration refers to working collaboratively with the buyer or purchaser.a strategic alliance is one in which two or more

business organizations cooperate and willingly modify their business objectives and practices to help achieve long-term goals and objectives. (Coyle, Langley, Novack, & Gibson, 2017)

Question 3

The performance metrics also refers to performance indicator, or KPI, which is the tool to determine the overall performance in work and business in general. Managing key performance indicators gives the insight on how well your business is doing and where its performance could improve. It also gives the precise objective feedback on the effectiveness of strategy management in a particular area. To evaluate overall performance, KPIs from each of your areas of operation is required because it can set the suitable objective and appreciate solution once problem arises (Markgraf, B., 2016)

The role of supply chain manager, is seemingly suitable to manage and conduct the performance metrics in the organisation. The responsibility of Supply Chain Manager is partly monitoring the KPI in the team from particular area. For instances, packaging team will generally report to their one manager, but Supply Chain Manager will be notified and eventually responsible to manage and maintain the effectiveness at the packaging team and other members. Supply Chain Manager is essentially important for the company because SCM is only person who constantly measure and evaluate. The measurement must give you a relevant variable that means something important to your business. The measured result must be available quickly, giving you time to react and make corresponding changes (Markgraf, B., 2016).

Reference

Markgraf, B. (2016, October 26). How to Manage KPI. Retrieved from https://smallbusiness.chron.com/manage-kpi-72590.html.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2017). Supply chain management: A logistics perspective (10th ed.). New York: Cengage South-Western.