Supply Chain Management : Operations Management

1204 Words Jul 5th, 2015 5 Pages
Supply-chain management is an important consideration of Operations Management. In the past, many businesses only focused on the operations occurring within. Even today, business push to increase standards of performance and quality, create better marketing strategies, improve efficiency in the workplace, and hire and train employees as part of human resource strategy, among other ‘inside’ actions. However, it is a growing reality that there are other ‘outside’ factors and stakeholders in the final product/service: it is a cumulative effort. As a result, these factors should be considered as an integral part of Operations Management Strategy.
Businesses implement supply-chain management by creating linkages between supplier and distribution channels. The goal of this active management strategy is to carve out a competitive advantage where efficiency is maximized and costs are minimized. According to “The AMR Supply Chain”, a defining characteristic of successful supply-chain management is the ability to manage demand, as opposed to simply responding to it. This is just one characteristic of successful supply-chain management. In order to accurately measure success, a series of other metrics must be used.
The term ‘metrics’ can be described as quantifiable standards or measures used by businesses to assess the success rates of implemented processes. Metrics should be designed to focus on key indicators related to the area of assessment: quality, efficiency, financial, and…
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