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Strengths Of Supply Chain Management: Management And Organization

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5.3 MANAGEMENT AND ORGANISATION

Evaluation of management and organization is another key component of successful supply chain management. Its key strengths and weaknesses are shown in Table 5-4.

Table 5-4: Strengths and Weaknesses: Management and Organization

Characteristics Strengths Weaknesses
Providing skills and competences  Corporate Omnia initiatives for certain areas (productivity programs, purchasing programs)
 Internal education
 Improvement culture  Structured education on supply chain management
 Knowledge database is missing
 Definition of core competences is missing
Having metrics  Key metrics in place  Should be better aligned with overall business targets
 Target setting not ambitious enough
Following design principles
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On the other hand, better understanding of rules and agreements as well as their follow-up would still be needed. The situation is completely different in newly acquired companies, who have their own processes, their own ERP systems, and no clear definition of rules and agreements among them.
Collaboration with other functions in OMNIA has a lot of good initiatives, such as documented procedures for introduction and discontinuation of products, close link with Finance on yearly and quarterly basis, to agree on internal turnover, stock and obsolescence. A yearly capacity planning process to agree on how to meet customer demand is in place. The area that would need to be improved is cooperation with Sales. Especially in terms of targets for service levels and customer
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service level to customers).

Table 5-6: Strengths and Weaknesses of Measurement System
Key areas Strengths Weaknesses
They must be lined to business strategy  Main KPI’s are part of yearly planning process  On KPI’s is not possible to see to which overall objective they contribute
They must be balanced and comprehensive; they need to take into account financial dimension, internal dimension, customer dimension, and innovation and learning dimension  Measurements are financial (e.g. stock levels, logistic costs) and operational (LT, Service level)  Innovation expect and customer aspect is not covered
 They are not comprehensive enough
 Some of them are very manual
Targets must be set on both internal and external benchmarks  Targets are on some KPI’s set
 Some benchmarks available  In most of the cases they are not set on the base of benchmarks
 Some of them are not showing development over
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