Response to post- CG
Performance measures should be viewed from a Supply Chain Management perspective as a method to monitor connections that you have with trading partners, and the important metrics related to supply chain process as well (Keah-Cho et al, 2019). According to Keah-Cho et al, “performance measures should be used to monitor the links with trading partners regarding the key supply chain processes” (Keah-Cho et al, 2019). Monitoring the connections that you have with trading partners is an important performance measure because continuously assessing how well your trading partners are performing is going to be crucial for your own business success. Slacking off and not monitoring your partners performance can be detrimental to ones’ own business success, as this constantly needs to be looked at, in order to give yourself the best chance at success. Just being aware of what is going on can go a long way. Also keeping tabs on important supply chain processes, like revenue and costs for example, can help you stay on top of your game as a business. You have to know what is going on with your funds from a supply chain perspective, because if you don’t things can start to go south without your knowing.
There is a relationship between performance measurement and a company’s competitiveness and profitability in that a supply chain manager who knows what is going on with their trading partners, as well as the funds, will translate into a competitive and profitable situation. Think about it, if you are a supply chain manager, and you are not aware of what is going on with your trading partners, then that will not lead to a competitive or profitable situation. The same goes for the other side of the spectrum, if a manager is aware of what is happening with trading partners, then they have a better chance of competitiveness and profitability. The same goes with a managers’ awareness of what is happening across all areas of funds. Knowing about sunk costs and revenue, and all the other metrics will give you a better chance of success.
One step needed to develop an effective performance system is to Identify the firm’s strategic objectives (Keah-Cho et al, 2019). By identifying the strategic objectives of the firm, team members will have a better idea of what needs to happen in order to meet these objectives. This way, everything is clear-cut, and no one will be questioning what their mission is, in order to make their goals come to life.
Another step needed to develop an effective performance system is to Identify internal and external trends likely to affect firm and functional area performance over time (Keah-Cho et al, 2019). By identifying internal trends within your firm that can effect performance over time, team members can identify things they are doing that are helping the overall performance. Along with that, they can also identify things they are doing that is hurting the overall performance, so that they can break those bad habits that are harming performance. The same can be said for external trends. Say a firm has a trading partner that is not living up to standards. The firm can cut ties with partners who are not carrying their weight, in order for long-term success of a company.
A third step needed to develop an effective performance system is to Develop an understanding of each functional area’s set of requirements for achieving the strategic objectives (Keah-Cho et al, 2019). By developing an understanding of the requirements of each functional area the firm has, they will have a better chance of meeting those requirements. If you have no understanding of what requirements need to be fulfilled, you have no chance of meeting them. So having an understanding of what they are is key in order to be able to fill them at some point.
Wisner, J. D. (2019). Supply Issues in Supply Chain. In T. Keah-Cho (Ed.), Principles of Supply Chain Management: A Balanced Approach (5th ed.). essay, CENGAGE. Retrieved March 22, 2022, from https://ng.cengage.com/static/nb/ui/evo/index.html?snapshotId=2838952&id=1431609386&eISBN=9781337617130.
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Performance measures should be viewed from a Supply Chain M appeared first on Skilled Papers.