Traits of Best Supply Chains

Traits of Best Supply Chains
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Traits of Best Supply Chains
Abstract
The effective supply chain has become an emergent strategy for companies to gain a competitive advantage and improve their performance in today’s business environment. This research identifies various traits that make the best supply chains. Studies show that the supply chain contributes to the growth of a business. Therefore, there is a need for organizations to incorporate the best traits in their daily operations. Data was collected using secondary tools, including journal articles and books that highlight the characteristics of best supply chains. Findings show that the best supply chains are accompanied by leadership consistency, innovation, strong planning capabilities, network design, clarity, delivery speed, and flexibility.
Key Words: Supply Chain, Traits, competitive advantage
Introduction
Over the past years, supply chains have been noted to play significant roles in business efficiency. Due to the increasing global trade, the production factors involved in consumer products and sourcing from destinations worldwide have strengthened the interdependence between the producers and wholesalers on the global supply chains (Aschemann-Witzel et al., 2017). Today, emerging technologies have highly impacted supply chain management. The literature behind the supply chain has offered numerous definitions of the supply chain. In simple terms, a supply chain refers to a network between a corporation and its suppliers to produce and distribute goods to consumers (Cooper & Ellram, 2013). This network includes different entities, people, activities, information, and resources. A supply chain exists in the manufacturing and service industries, although the chain's complexity may change with company and industry (Georgise et al., 2014). Numerous studies have documented numerous traits that determine the best supply chains. Based on business-business relations, the following characteristics have been observed: leadership consistency, innovation, strong planning capabilities, network design, clarity, delivery speed, and flexibility.
Research Questions
The primary research question is: What are the traits of the best supply chain? The secondary research question is: How do these traits help the supply chain achieve business efficiency and customer satisfaction?
Research Objectives
* To identify traits of the best supply chains.
* To determine how the identified traits help the supply chain achieve business efficiency and customer satisfaction.
Methodology
In developing findings, this study utilized existing research from previous studies. These existing studies were derived online using search engines like Google. Key terms used for the search include ‘‘traits of best supply chains,’’ ‘‘characteristics of best supply chains’’, ‘‘characteristics of n effective supply chain,'' and ''characteristics of the best class supply chain''. A lot of books and journal articles associated with the subject emerged from the search. They were selected based on their validity and credibility to ensure the accuracy of the information presented. Results were then analyzed qualitatively.
Literature Review
The rapidly changing environments and competition from different organizations have resulted in a significant challenge in managing an effective supply chain. Shaheen et al.(2017) presented an empirical study of the link between supply chain management and operational performance. Georgise et al. (2014) supported the notion that supply chain practices directly affect competitive advantage and organizational performance. Their findings show that supply chain practices initiate competitive advantage that will lead to improved organizational performance. In drawing from previous literature, this study proposes the following traits of best supply chains.
Leadership Consistency
Leadership consistency helps establish a solid foundation for an effective supply chain. Studies show that the supply chain can be weak if an organization constantly switches leaders (Mahdavi, 2017). Conversely, having a stable leader builds a strong supply chain. According to Nakornsri (2018), effective supply chain leaders should have critical skills. Some traits should be influenced by metrics and technology-savvy (Cooper & Ellram, 2013). For metrics to drive leaders, they need to be in a position to list and illustrate the factors affecting cost and availability (Poirier et al., 2009). They should also encourage firms to perform the best practice analysis.
Most importantly, leaders need to create a reward and incentive program to improve the company's progress. Providing incentive programs encourages people to work harder to achieve their bonuses (Nakornsri, 2018). Leaders also need to understand the new technology to have an effective supply chain. Therefore, the best supply chain is established by leadership.
Innovation
The best supply chains embrace innovation and technology. Incorporating new technology in supply chains enables companies to stay competitive and provide quality services at all stages (Rajesh, 2018). Poirier et al. (2009) found that companies implementing the right technologies have the best supply chain. For instance, General Mills, a US-based food company, is one of the corporations with the best supply chain because it creates and develops technology correctly the first time. Rajesh (2018) noted that technology use helps companies track their inventory. It also helps organizations track their progresses in terms of finances and product availability. According to Shaheen et al. (2017), the technology significantly reduces production costs and achieves customer demands. It also helps in managerial functions such as organizing, planning, and strategizing within the corporation, thus, improving the supply chain process.
Key technologies available in the best supply chains include cloud computing, Artificial Intelligence (AI) and Machine Learning (ML), and blockchain. Dash et al. (2019) stipulated that AI and ML create complete or semi-automated processes for supply chain optimization. Optimization improves logistics planning, forecasting, implementation, and maintenance by using AI and ML to emulate human knowledge and performance (Dash et al.,2019). In addition, these tools boost the end-end supply chain by tightening data security, automating inventory management, providing complete supply chain visibility, and improving customer service.
Blockchain is an information recording system used to secure data (Queiroz et al., 2019). In supply chains, this technology can enable more transparent tracking. It allows companies to digitize physical assets and generate decentralized, immutable transaction r...