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Management Operations - Supply Chain

1. What operational changes would you expect if your company implemented a new supply chain system ? What barriers to implementation would you see?

2. What factors should influence an organizations decision to implement or not to implement supply chain concepts?

3. How does an organizations management and culture influence the implementation of supply chain concepts?

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1. What Operational changes would you expect if your company implemented a new supply chain system ? What barriers to implementation would you see?

Organizational change is required as you make changes in how you evaluate supply chain performance. In a traditional functional organization, supply chain metrics are often designed to motivate behaviors that optimize performance within a specific department or function. As
your supply chain strategy and associated process design evolve, you will need to embrace a new set of metrics designed to motivate behaviors that optimize performance for the company as a whole. If your organization is not restructured in a way that facilitates achievement of these objectives, target performance levels will not be reached, and the entire strategy may be
questioned. The converse is also true: The metrics you put in place to measure supply chain performance must support and encourage the behaviors you expect of the people within your organization.

* What barriers to implementation would you see?
- Supply chain complexity. Sources of complexity include complicated networks, logistics bottlenecks, short product life cycles, demand uncertainty, supplier reliability or lack thereof.
- Another barrier to supply chain improvement, particularly as it applies to technology solutions, is the proliferation of products in the software space. Not everyone is going to spend hundreds of millions for a planning system. However, the smaller company may have to make bets of
the same relative size just to stay competitive. Few can afford to fail when the stakes ...

Solution Summary

What operational changes you would expect if your company implemented a new supply chain system is explained. What barriers to implementation you would see is discussed. What factors should influence an organizations decision to implement or not to implement supply chain concepts is explained. How an organizations management and culture influence the implementation of supply chain concepts is explained.

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