Logistical drivers in a supply chain include facilities, inventory, and transportation, while cross-functional drivers include information, sourcing, and pricing. Facilities store and process inventory, while transportation moves it. Information analyzes inventory, transportation, and facilities, while sourcing determines internal or outsourced functions. Pricing determines the price of goods and services.
Keywords: Supply chain drivers
A company can improve supply chain performance in terms of responsiveness and efficiency. It is needed to examine the logistical and cross-functional drivers to know about Supply Chain performance.
Logistical vs. cross-functional drivers
Supply Chain Drivers
Facilities are places where inventory is stored, assembled, or fabricated production sites and storage sites. Inventory is raw materials, WIP, finished goods within a supply chain. Transportation denominates moving inventory from point to point in a supply chain,which may be even combinations of transportation modes and routes. Information denominates data and analysis regarding inventory, transportation, and facilities in the supply chain as a whole. which may be considered the biggest driver of supply chain performance. Sourcing denominates functions in a firm, which functions should be outsourced or internally performed. Pricing is associated with the price of goods and services given by a firm to the supply chain.
The concept of supply chain drivers helps us to manage our supply chains and the related functions in a logical way.