Supply Chain Design

Supply Chain Design
Name:
Institution:
Date:
Supply Chain Management is utilized by firms for performance improvement and securing competitiveness. CITATION Arl10 \l 1033 (Arlbjørn, de Haas, Mikkelsen, & Zachariassen, 2010). To understand the direction and changes required in a business, performance measurement and management is vital. This requires setting goals that will be measured against the company's performance variables CITATION Arl10 \l 1033 (Arlbjørn, de Haas, Mikkelsen, & Zachariassen, 2010).
Several metrics are used to determine a company's performance (electric company). However, the most effective combine individual performance of single metrics such as the ROI and EVA to provide holistic information about a supply chain's performance. Such metrics are for example; the DuPont Model (DM) and Balanced Score Cards (BSC) CITATION Arl10 \l 1033 (Arlbjørn, de Haas, Mikkelsen, & Zachariassen, 2010).
The DuPont Model highlights the ROIs combination of asset turnover ratio with the margins of net profit. Since companies operate either on profit margins that are with low volume, or lower profits with high margin two distinct SCM strategies are provided via this model CITATION Arl10 \l 1033 (Arlbjørn, de Haas, Mikkelsen, & Zachariassen, 2010). In addition, the Balanced Score Card can also be utilized. This brings in four new separate management processes that work through short-term actions to bring long-term results. These processes are; vision translation, linking and communicating, planning, and learning and feedback. These help the company to constantly modify its strategies in response to the technological environment and competitive market CITATION Kap07 \l 1033 (Kaplan & Norton, 2007).
Supply chains have become complex with a myriad of participants in various end-markets. Below is an example of a modern flow diagram for an electric fan supply chain whose performance can be evaluated by the above methods
Figure 1: Flow Diagram for an Electric Supply Chain.
Other DistributorsComponent DistributorsPCBs
Networking
Peripherals3PLsOEMsSemi-conductors
MedicalContract ManufacturersConnectors
Other distri...