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Supply Chain Management,
the measurement
process presented by
Dr. Darren Prokop,
Professor of Logistics,
University of Alaska Anchorage.
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What is supply chain management?
It is the linkage of organizations in
order to meet some strategic goal.
Linkages could be
achieved through
contractual relationships or
through mergers and acquisitions.
Linkages could be more informal
and involve a joint venture
or strategic alliance covering
a more limited
business activity.
In any case, the intent of supply
chain management is to foster
trusting relationships
whereby the partners
are more valuable
together than apart.
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In addition to efficiency
in operations,
another means to
achieving and maintaining
a competitive advantage
is transparency,
i.e. demonstrating clarity
in business activities.
Companies practicing
operational transparency
would likely be rewarded
by upstream vendors and
downstream customers
along the supply chain.
Transparency engenders trust and
indicates a willingness to
share data and information
with supply chain partners
so that they all can make
better decisions about how to
cooperate and coordinate
with one another.
Transparency engenders
financial trust as well,
whether it be a privately owned
or publicly traded company,
those who own and/or finance
the company would appreciate
as much clarity as
possible concerning
financial performance.
Financial and operational
transparency,
as well as efficiency,
are informed by how these concepts
are measured and communicated.
This gets into the
philosophy of measurement,
i.e. what should
be measured given
the constraints of limited
time and money and
being able to allocate
enough time and money
to achieve efficiency
and transparency.
If an activity is measured
and communicated,
