Monday 9 March 2015

SCM effectiveness, the important thing to be measured



SCMreview 9 March 2015: vol. 1 no. 3

SCMreview today is about the effectiveness of SCM – the important thing to be measured – from Fawcett et al. (2008) article. They – the authors – have examined the effectiveness of SCM through quantitative and qualitative analysis. Many aspects strongly affect to the effectiveness of SCM. Fawcett et al. (2008) – based on their study – found several phenomenon are powerfully related to such the effectiveness. The customer satisfaction is predictably more important to be considered rather than the cost saving. Mostly the managers diagnose to take into account the technology, information and measurement systems; because they will be as barriers when they are not managed well. A culture, trust, intention and willingness to collaborate; will be practically people issues that must be handled and controlled well, exclusively in the effort to enhance the effectiveness of SCM. Furthermore, the people also are the bridge to collaborate all SCM elements and players effectively. That’s why, the people – at least who are directly related with SCM activities – are required to be managed totally.

The integration – again, as a realisation of the collaboration – is the important thing to be considered, to touch the highest level in effectiveness of SCM. The integration must be realised – not only – strategically, operationally – but also – and technologically (Hult et al. 2004). The issue of the integration should be more challenging when more people and companies involve in the SCM pipe itself. As, the people – and companies as well – can directly influence the culture and trust that have been prudently developed. Without the culture and trust, the integration will rapidly demolish the effectiveness. [dnu]

Reference
Fawcett SE, Magnan GM, McCarter MW. 2008. Benefits, barriers, and bridges to effective supply chain management. Supply chain management: an international journal (13) 1: 35 – 48.
Hult G, Thomas M, Ketchen DJ Jr, Slater SF. 2004. Information processing, knowledge management, and strategic supply chain performance. Academy and management journal (47) 2: 241 – 254.