In understanding how companies can improve supply chain performance in the ability to respond and efficiency, it must examine the triggering of the supply chain include:
1. Facilities (facilities)
This triggers an actual physical location in supply chain network in which the product is stored, processed, and manufactured. Two main types: the production and storage. The debate about the role, location and capacity of the facility fleksibitas have a significant impact on supply chain performance.
These triggers include all raw materials, goods in process and finished goods in the supply chain. Changing the inventory policy, can alter the efficiency and ability to react company.
This trigger is required to move supplies from one point to another in the supply chain. Transportation can be various combinations of ways and channels with their respective characteristics.
This trigger consists of data and analysis of facilities, supplies, transportation, cost, price, and customers, in the supply chain. Most capable of information in the supply chain performance because it has a direct impact on each trigger and also help in improving management of supply chain opportunities and thus more efficient.
This triggers a choice of who / part of the supply chain activities to be used as production, storage, transportation, or management information. In the strategic level, this decision to decide whether the company’s performance or whether the functions that are outsourced by the company. Decisions relating to these triggers, impact on the ability to respond and efficient supply chain companies.
6. Pricing (pricing)
These triggers determine how much the company will issue a price for goods and services contained in the supply chain. Impact on the pricing behavior of buyers of goods and services, thus can have an impact on supply chain performance.
Of each of these supply chain triggers, triggers interact with other supply chain to determine the level of response capability and efficiency of the company. As a result, this triggers the structure to determine if and how the impact on supply chain performance.
Triggers Compilation Framework
To be successful, companies must develop a good combination of the three logical and three cross-functional triggers. For each trigger, supply chain managers must make trade-off between efficiency and the ability to react, based on the interaction with other triggers. This combination affects the trigger and then determine the ability to respond and benefit the entire supply chain.
Most firms, starting with competitive strategy and then decide whether the supply chain strategy that will be used. This supply chain strategy determines how the supply chain should make the company easier and more efficient action.
Role in the supply chain, the facility is located where the supply chain. With the facilities, supplies can be changed both in the manufacturing process and stored.
In a competitive strategy, the role of the facility is a key trigger of the supply chain performance capability and efficiency to respond.
The decision in the facility will help the company’s success strategy. Components of the facility’s decision must be analyzed in the form of role, location, capacity, and facilities associated with the metrics.
Inventories in the supply chain is a meeting between demand and supply. Role in the supply chain increase the number of requests that can be filled with a product that is ready and there when customers need it. Another significant role is in reducing costs by economies of scale that existed during the production and distribution.
Inventories can be raw materials, goods in process and finished goods. Inventory is a source of major costs in the supply chain and has a major impact on the company kemempuan respond. Meanwhile, the role of inventories in the competitive strategy is to support the company’s competitive strategy.
Components of inventory decisions that need to be analyzed in the form of cycle inventory, safety stock, seasonal inventory, production ability levels, and inventory-related metrics.
Transportation to move products between different places in the supply chain. Just like other triggers, transportation also has a big impact for the ability to respond and the efficiency of the company. More rapid transport supply chain causes more rapid response but not more efficient. Types of transportation companies can also affect the supply and location of facilities in the supply chain.
Role in the company’s competitive strategy is to describe the state of the company regarding the consideration would target the needs of customers. If companies want a competitive strategy of target customers with the level of demand that has a high response and the customer also has a high ability to pay the transportation company should use as a trigger to better respond to supply chain.
Component of transportation decisions that need to be analyzed in the form of transportation network design, choice of means of transportation, and transportation-related metrics.
Information is affecting every part of the supply chain. Provides information or service relationship between the various parts of the supply chain, so as to coordinate and maximize the total supply chain profitability. Information is also important in the operation of each part of the supply chain.
The role of information in competitive strategy in a company used to make these companies respond faster and more efficiently. Rapid growth in the importance of information technology is evidence of the impact of information that can grow the company.
Components decisions that need to be analyzed information in the form of push vs. pull, coordination and sharing of information, forecasting and comprehensive planning, technology that enables and information related to metrics.
Resource is a set of business processes required in the purchase of goods and services. Managers must first decide which tasks will be outsourced and that will be done by the company itself.
Its role in competitive strategy is very important that the level of efficiency and ability to respond to that will be received by the supply chain. In some examples of companies to outsource to respond if the 3 parts are too expensive in developing unuk company’s ability to respond.
Components of resource decisions that need to be analyzed in the form of in-house or outsourced, supplier selection, procurement, resource-related metrics.
Pricing is a process in which firms decide how much to charge customers for goods and services produced by the company. Impact on the pricing segment of customers who choose to buy the product, as well as customer expectations. This directly affects the supply chain to respond to the same level as the nature of demand in the supply chain.
The role of pricing in competitive strategy of targeting customers. This resulted in the importance of companies to develop supply chains that can bring together two different needs.
Components of pricing decisions that need to be analyzed in the form of pricing and economies of scale, everyday low pricing vs. high-low pricing, fixed price versus menu pricing, and pricing-related metrics.
Barriers achieving strategic fit
The key to achieving strategic fit is the company’s ability to find a balance between the ability to respond and the efficiency that brings the needs of target customers. This decision should be allocated in the responsiveness spectrum where companies are faced with many obstacles.
These obstacles can increase the company’s difficulties in creating the ideal balance, but on the other hand these obstacles can increase the chance the company to increase supply chain management.
The following constraints, which can be overcome if the manager can increase a company’s ability to obtain maximum profitability of the supply chain are:
- Increased product variety
- Reduced product life cycle
- Increased customer demand
- Solving the supply chain ownership
- The difficulty implementing new strategies
Describes the main obstacles in the company to help manage supply chains successfully. Above constraints is a factor that can hamper the performance of the supply chain.