Importance of an Organization's Operational Efficiency

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Organization's Operational Efficiency Introduction The ability or agility to respond effectively and quickly to market demands is being used as a vital competitive tool in the production sector. Companies deploying global sourcing tactics must balance the limitations of off shore offerings against the monetary benefits. Improving the efficiency of supply chain is the key to attaining this. These improvements look upon the magnitude at which a company reduces uncertainty in its supply chain. Effective management of supply chain is the most valued and daunting business element. Forever, Apple has been popular for its inspiring designs and innovative products. However, one factor that differentiates this corporation in terms of service delivery relates to its supply chain knowledge. Three (3) tasks that do not align with the operational strategy Long-term and short term goal conflict have become a serious barrier for the organization to implement suitable supply chains. This is particularly because the supply chains have failed to adapt quickly to market dynamics. The major weakness is that the management lacks the commitment within the supply chains and individuals involved. The absence of commitment from the top management team causes island solutions to organizational problems (Gattorna, 2008). The organization is engaged in cost advantages guided by productivity and efficiency concepts, which do not lead to a sustainable and long-term competitive advantage. Probably,
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