Measurement and Management
The performance of a supply chain can be measured using different methods. Categorically, there are qualitative and quantitative measures for supply chains. People do qualitative measures through observing and reviewing customer behaviour and the nature or quality of the products. Examples of qualitative measures include customer satisfaction and product quality. For instance, is customer satisfaction is rated high, then it implies that the supply chain performance is excellent. Likewise, the quality of products also dictates the performance of the supply chain. Quantitative measures are used mainly to track or compare the performance of products. Examples of quantitative measures include resource utilisation measures, flexibility and delivery performance. Quantitative measures are classified into financial and non-financial measures ( Fredendall & Hill, 2016) .
Quantitative Measures
As noted above, quantitative measures are further categorised into two groups, that is, non-financial and financial measures. Examples of non-financial measures include resource utilisation, customer service level, flexibility, inventory levels, cycle time, and quality. Cycle time, also referred to as lead time, is the order to delivery or end-to-end delay in a commerce process. By minimising lead time or the end-to-end delay, the organization maximizes its supply chain’s performance. Inventory levels can also be used to measure the performance of a supply chain. Inventory costs increase the total cost of products. It is, therefore, necessary to maintain optimal inventory levels to meet customer demands. By looking at the actual levels, one can check the efficiency of the system. Resource utilisation refers to the use of machines, material, human labour, warehouses, and efficient modes of transportation. By utilising all the resources, the corporation minimises customer service levels and reduce its lead time. At the same time, effective utilisation of resources or assets also optimises inventory levels. Resource utilisation, therefore, provides a way of measuring the performance of a supply chain. In a situation where the inventory levels are deficient, customer service is minimal, and the lead time is high while all the resources have all been effectively put to use, the performance of the supply chain is said to be very poor.
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Financial measures for the performance of a supply chain include the cost of raw materials, inventory holding costs, cost of goods returned by customers, cost of expired products, transport costs, revenue from goods sold, and credits for goods returned by customers. Financial measures are generally taken by gauging fixed and operational costs related to the supply chain. A hike in prices, for example, may occur due to changes or issue in the inventories, facilities, materials, labour or transportation.
Global Supply Chain
Global supply chains refer to the worldwide networks through which big companies operate by purchasing goods or suppliers. The process is mainly carried out overseas and may involve more than two parties. It involves the processes used in production, handling and distribution of finished products. It also involves providing services and products to customers ( Song & Panayides, 2008) .
International trade
International trade involves the exchange of goods and services between different countries. International trade makes it possible for people to have access to products that do not exist in their country or region. International trade also improves the economy of the world by allowing people to trade beyond their borders. International trade creates a good competition in the market and helps customers get goods at more affordable prices. Prices, supply and demand for products and services may be affected by global events such as political ideologies and changes. For example, if a country increases its cost of labour, the manufacturing costs of products may increase leading to an increase in the prices of the products.
Role of Supply Chain in Globalization
Supply chains play a great role in the globalisation of organisations. The supply chain provides an organisation with the knowledge of the global market dynamics and helps the organisation to adjust to cope with the global business situation. A supply chain also reduces tariffs and trade barriers in the global market thereby reducing the amount of money spent during the acquisition and distribution of goods. A proper supply chain connects the organisation to the rest of the world. A supply chain can help bring a company closer to its customers. A good supply chain may also help a company gain more customers due to the ease of the company’s operations. Customers want to receive their products as quickly as possible. At the same time, customers want all their demands to be put into consideration for them to receive products with all the qualities they require.
At Dell, customers have the opportunity to receive first-hand products directly from the company ( Brewer, Button, & Hensher, 2008) . Dell’s supply chain has been key to its growth and popularity over the years. Unlike other companies, Dell uses a supply chain which does not involve retailers. The company sells its goods directly to consumers rather than supplying finished products to retailers. The company uses a system where customers record the specification they require on machines, which are then transferred to the manufacturing and assembly section. Customers can then receive their finished products with the preferred specification as they indicated after a very short time.
Recommendations for dell
Dell’s mission is to become the most successful company globally in relation to the customer experience. A recommendation for the company would be to improve customer experience by creating more customer care centers in various places where people can easily visit to inquire more about Dell products. While the online platforms carry out the same function, an actual physical platform is much better as it opens the door even to those who do have access to the online platform.
References
Brewer, A. M., Button, K. J., & Hensher, D. A. (Eds.). (2008). The Handbook of logistics and supply-chain management . Emerald Group Publishing Limited.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management . CRC Press.
Song, D. W., & Panayides, P. M. (2008). Global supply chain and port/terminal: integration and competitiveness. Maritime Policy & Management , 35 (1), 73-87.
