Effects of Integrated and Transparent Supply Chain on Customer Services and Production Performance

Abstract

The supply chain of a manufacturing enterprise is a world-wide network of suppliers, factories, warehouses, distribution centres and retailers through which raw materials are acquired, transformed and delivered to customers. In order to optimize performance, supply chain functions must operate in a coordinated manner. But the dynamics of the enterprise and the market make this difficult: bank rates change overnight, political situations change, materials do not arrive on time, production facilities fail, workers are ill, customers change or cancel orders, etc. causing deviations from plan. In some cases, these events may be dealt with locally, i.e. they lie within the scope of a supply chain function. In other cases, the problem cannot be "locally contained" and modifications across many functions are required. Consequently, the supply chain management system must coordinate the revision of plans or schedules across supply chain functions.