Failures In Supply Chain Management

1) Introduction

Supply Chain Management is a concept that is gaining in importance and popularity. Organization progressively find themselves reliable upon having effective supply chains, and network in order to successfully compete in the global market economy (Lambert 2008). According to Wen(2007) the competition has increased from being between individual organization to being between supply chains. So now organization needs to understand how supply chain management can successfully applied in their organization (Steven Williamson, 2010). There is no universally accepted definition for Supply Chain Management, but the Council of Supply Chain Management stated that SCM is a process of " encompasses the planning and management of all activities

It effectively links supply chain partners to achieve breakthrough performance in satisfying end-customer needs and provide feedback regarding customers’ needs and the supply chain’s capabilities (Wisner, Tan & Leong, 2008).Indicators of supply chain performance have an important role to play in setting objectives, evaluating performance, and determining future courses of actions (Lee, Kwon & Severance, 2007). Despite the increasing amount of attention paid to Supply Chain Management(SCM) by many companies across the globe, failures in effectively implementing SCM practices still exist. One of the main reason organization fail to successfully implement SCM is because the organization fail to link between SCM dimension and the organization's performance.Sink and Tuttle (1989) claim that you cannot manage what you cannot measure. There are many performance measures given but to identify the appropriate performance measure for the analysis of supply chain might be a challenge for the organization (Anant Deshpande,

Order lead time refers to the time difference in between the receipt of customer order until the delivery of finished goods to the customer complete and damage free which satisfy the customer’s requirement. The reduction in order cycle time leads to reduction in supply chain response time. According to Stewart (1995), an increase in delivery performance is possible through a reduction in lead time attributes. This can be measured by sum of the number of days between when the orders were placed and when orders are received divided by total number of orders placed. Various factors that can influence delivery speed include vehicle speed, driver reliability, frequency of delivery, and location of delivery. An increase in efficiency in these areas can lead to a decrease in the order lead time and also the inventory level of a