In several companies, supply chain management is a vital part of an industry’s success. A supply chain is a system of people, resources, and activities contained in the movement or production of an industry's product. Colgate Company is a toiletry production industry which was founded by William Colgate in 1806. It is ranked 472 nd as the world’s biggest public company. It is a company that has gained from a sound supply management system because it provides excellent good customer service by providing quality products. Its supply chain reduces its cost of operation by decreasing purchasing cost. It has also improved their financial position globally, Forbes has ranked them to have a revenue of $15.2 billion with market revenue of $64.9 billion (Shannon, 2018).
In order to keep up with the current state of businesses being competitive, what Colgate company needs to perfect on is keeping in contact with supply chain partners through collaboration. It also needs to perfect its customer service level to ensure customers get what they want for the right price and quality. They should also use new technology to help in measurement and efficiency in results of the supply chain.
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Time has always been a critical metric in analyzing a global supply chain’s performance. This is because the industry has to select a performance metric that relates to time, whether a product was delivered on time, how long it takes to process a purchase order and time taken to fulfil an order. Cost metric is also crucial because this determines how much the company is making a profit, where the company needs to improve in terms of cost. One of the most common performance cost metrics is inventory cost that determines how much will be spent to carry inventory into the warehouse. The other one is quality metrics, which is mainly aimed at customer satisfaction for companies that value customer experience (Martin, 2018).
References
Martin M., (2018) the Balance Small Business. Supply Chain Performance Metrics. Available from: https://www.thebalancesmb.com/supply-chain-performance-metrics-2221392
Shannon L., (2018) Supply Chain Digital. To 10 Biggest Supply Chains. Available from: https://www.supplychaindigital.com/top10/top-10-biggest-supply-chains
