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Supply chain Management is one of the most important sector in the business industry because its what makes other businesses or organisations to stand, by selling what it has been supplied by supplying chains. It feeds an organisation by means of supplying all the goods that a acompany requires in order to function successfully. Therefore it is important that a company should frequently check if it is still operating within the customers expectations, they should check is th quality of the product has not changed or infact the standard has increased without costing too much capital, is the number of customers increasing or decreasing. The etechonolody sector is always a competitor to any organisation so the employer needs to keep training their employees in oder to counter act on the competitors. On the overall perfomnce of the supply chain Management… Companies usually focuses on the quality( inventory accuracy ) of the product and the expenses of the company( Financial performace)this two factors can help supply chain to understand if they are doing good job or not. They can also came up with new methods of supplying their customer with most effective product timely.
With financial measures the supply chain tend to focus on capital or the expenses made on each and every product made by the company, in that manner they get to see if they are profiting or having loses. E.G company( y ) is a supplier of glasses, the company has to start by calculating the amount it cost to pruduce a single glass vs the selling cost. They then would go to a hundren glasses per week, month until to a year to determine if they are a profitable business or not againthe company has to considerd the expenses used for running the warehouse or the space used for manufacturing and expenses used for transportation. If the expense is more than the profit made then the supply chain is not doing well. Inventory measurers deals with the quality of the goods produced by the company. It can assess if the product is made by the best material by checking for any damages occuring after the produsing and after delivering the product, too much damages will proof as to the qualit of material used they can then try and fix that problem. The campany need to be more innovative in order to secure the customer because if a customer is happy with what a supplier is making there wont be a need to move to another supplier. Therefore it is very important that the organisation keeps or mantain the standard of the product produced so that the organisation doesn’t degrage but increase its perfomance.
A company can also focuses on time measure; how long does it takes for the company to deliver the goods that has been odered . It can trace perfomce from the starting point (the moment an order is placed )to the point of delivery. The outcomes can determine if the transport perfomance is satisfactory or not.