Supply Chain Management : Operations Management

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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…show more content…
AMR stresses that a comprehensive metrics-system considers the right balance of both quantitative and qualitative mechanisms. Unfortunately, much of the data and information needed to analyze operational and innovation excellence inclusively is not readily available. Therefore, AMR supplements information found with financial measures, recognizing that using purely financial metrics to evaluate the state or success of supply-chain management is insufficient. For supply-chain management, the ideal metric system considers basic dimensions of performance: operational excellence and innovation excellence. These two performance dimensions give way to four key metrics the AMR ‘wished they had’: (1) Perfect Order Rate; (2) Total Supply Chain Costs; (3) Time to Value; (4) Return on Product Launch. (1) Perfect Order Rate According to Klipfolio (2015), the perfect order rate calculates the success rate of orders that are shipped or delivered without incident. In this case, incidents include damaged goods (goods with malfunctions or defects), delayed shipments (goods arriving later than the specified time period), or inaccurate orders (shipping the wrong thing to the wrong person). It can be surmised that a business with a high perfect order rate has mastered efficiency with the supply and distribution relationship. A high perfect order rate also indicates customer satisfaction (since customers would express
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