Quintessential Components for an Effective Supply Chain
C.L. Kappagomtula, Member
When one thinks about Supply Chain (SC), two things come to the mind:
- Efficiency (linked to the cost component), and
- Responsiveness (linked to the reaction time)
These 2 are typically at an inverse relation to each other.
Maximizing the effectiveness of either of them can be possible only when the 'drivers', which are the essential elements of a SC, are well structured and managed.
The 6 essential drivers for any effective supply chain are
(which are tangible entities)
6. Information Systems
(which are cross-functional in nature and are intangible).
The challenging task is to harness the synergy out of these six drivers to keep the supply chain going strong and effective. Because the stakeholders in the system viz. customers, channel distributors, facility managers and suppliers all want to get benefits from it.