Supply chain performance in Manufacturing: A literature review

Topics: Supply chain management, Management, Manufacturing Pages: 5 (1464 words) Published: October 2, 2013
Supply Chain performance

Historically, the interest for supply chain management have risen since when companies, especially manufacturing companies understood that having better relationships inside and outside their companies could have great impacts in enhancing their performance in terms of time, quality, quantity produced and also in reducing costs production. However, it is only during this last decade that research in this discipline has really increased and that numerous models have come up to assess the supply chain performance. In this paper, we attempt to give a better understanding of the supply chain and how the models proposed can help manufacturing sector to perform better. This article is essentially a review of different conceptual models proposed in three chosen articles. Introduction

The supply chain management can be defined as all the activities that step in the manufacturing process from the transformation of raw materials into final products to the customer delivery (Beamon, 1998). All these activities can include “systems management, sourcing and procurement, production scheduling, order processing, inventory management, transportation, warehousing, and customer service” (Cooke 1997 cited in Cooper et al. 1997, page 2) and are carried on in order to achieve competitive advantages for companies (Cai, Liu, Xiao and Liu 2009 cited in Ai-Chin et al. 2010, page 137), and to deliver both efficiency and effectiveness (Singh, Oberoi and Ahuja, 2011). If in first place, researchers were only focusing on these activities taken individually, the situation has changed recently and more attention is now placed on the performance of the supply chain as a whole, according to Beamon, (1998). For the author, this is essentially due to major changes in the manufacturing sector such as “the rising costs of manufacturing, the shrinking resources of manufacturing bases, shortened product life cycles, the leveling of the playing field within manufacturing, and the globalization of market economies”. Hence numerous researchers are proposing different conceptual models for the manufacturing to reach an optimal level of performance in order to meet the customer satisfaction. This article is an attempt to overview different approaches that are proposing different frameworks of supply chain performance determinants and will address the following areas: the challenges manufacturing supply chain management are facing; a review of different models proposed to assess supply chain performance.

The supply chain management challenges
According to Ai-Chin et al. (2010), the most important issue for the supply chain management is “the relationship quality in the manufacturing industry” with both customer and supplier. In their article, the authors lies this assertion in different researches made such as Lummus and Vokurka (1999) , Cox et al. (2003), Sahay (2003), Van Weele (2005), Tumala, Philips and Johnson (2006) and Chandra and Kumar (2000). In fact, for them manufacturing companies are facing the changing response of customers that are always “requiring products in a short time frame whenever they increase demands without prior alignment. This situation constitutes a real issue for the companies as they are required to respond favorably and efficiently to customer expectations (Singh, Oberoi and Ahuja, 2011). In addition, relationships with supplier can be tough to manage as they imposed rigid conditions to manufacturing companies (Ai-Chin et al., 2010). Furthermore, others challenges are also very important to consider according to Ai-Chin et al. (2010). Among them we can mention information and communication technology “to increase the communication and to disseminate information (Altekar 2005, cited in Ai-Chin et al. 2010, p. 138), “customer satisfaction, product quality, delivery precision, capacity constraint and manpower issue” (Ai-Chin et al., 2010) that are very hard to be clocked. In this context, it is...

References: Beamon, B.M. 1998, “Supply chain design and analysis: models and methods”, International Journal of Production Economics, Vol. 55, no. 3, pp 281-294.
Cooke, J. A. 1997, “In this issue”, Supply Chain Management Review, Vol. 1, no. 1, p. 3.
Cooper, M. C., Lambert, D. M., Pagh, J. D. 1997, “Supply chain management: more than a new name for logistics”, International Journal of Logistics Management, Vol. 8, no. 1, pp. 1-14.
Duclos, L. K., Vokurka, R. J. and Lummus, R. R. 2003, “A conceptual model of supply chain flexibility”, Industrial Management and Data Systems, Vol. 103, no. 6, pp. 446­456.
Lummus, R. R. and Vokurka, R. J. 1999, “Defining supply chain management: a historical perspective and practical guidelines”, Industrial Management & Data Systems, Vol. 99, no. 1, pp. 11-17.
Sahay, B.S
Singh, D, Oberoi J. S. and Ahuja, I. S. 2011, “A survey of literature of conceptual frameworks assessing supply chain flexibility”, International Journal of Applied Engineering Research, Dindigul, Vol. 2, no. 1, pp. 172-182.
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